Main Street Capital (MAIN) Competitors

Main Street Capital (NYSE:MAIN) and Ares Capital (NASDAQ:ARCC) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, media sentiment, risk, valuation and profitability.

Which has more volatility & risk, MAIN or ARCC?

Main Street Capital has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Ares Capital has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Is MAIN or ARCC more profitable?

Main Street Capital has a net margin of 96.16% compared to Ares Capital's net margin of 44.94%. Main Street Capital's return on equity of 12.70% beat Ares Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Main Street Capital	96.16%	12.70%	6.85%
Ares Capital	44.94%	10.48%	5.00%

Do analysts recommend MAIN or ARCC?

Main Street Capital currently has a consensus target price of $60.40, suggesting a potential upside of 3.87%. Ares Capital has a consensus target price of $22.63, suggesting a potential upside of 15.97%. Given Ares Capital's stronger consensus rating and higher probable upside, analysts plainly believe Ares Capital is more favorable than Main Street Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Main Street Capital	0 Sell rating(s)	5 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.29
Ares Capital	0 Sell rating(s)	2 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.80

Which has stronger earnings and valuation, MAIN or ARCC?

Ares Capital has higher revenue and earnings than Main Street Capital. Ares Capital is trading at a lower price-to-earnings ratio than Main Street Capital, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Main Street Capital	$541.03M	9.61	$508.08M	$6.07	9.58
Ares Capital	$2.99B	4.60	$1.52B	$2.05	9.52

Do insiders & institutionals have more ownership in MAIN or ARCC?

20.3% of Main Street Capital shares are owned by institutional investors. Comparatively, 27.4% of Ares Capital shares are owned by institutional investors. 4.0% of Main Street Capital shares are owned by insiders. Comparatively, 0.5% of Ares Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Does the media favor MAIN or ARCC?

In the previous week, Ares Capital had 5 more articles in the media than Main Street Capital. MarketBeat recorded 19 mentions for Ares Capital and 14 mentions for Main Street Capital. Ares Capital's average media sentiment score of 1.29 beat Main Street Capital's score of 0.73 indicating that Ares Capital is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Main Street Capital	3 Very Positive mention(s)	3 Positive mention(s)	7 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ares Capital	15 Very Positive mention(s)	3 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is MAIN or ARCC a better dividend stock?

Main Street Capital pays an annual dividend of $3.06 per share and has a dividend yield of 5.3%. Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 9.8%. Main Street Capital pays out 50.4% of its earnings in the form of a dividend. Ares Capital pays out 93.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Main Street Capital has increased its dividend for 4 consecutive years.

Summary

Main Street Capital beats Ares Capital on 10 of the 19 factors compared between the two stocks.