Sixth Street Specialty Lending (TSLX) Competitors

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

Is TSLX or ARCC a better dividend stock?

Sixth Street Specialty Lending pays an annual dividend of $1.84 per share and has a dividend yield of 7.9%. Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 9.0%. Sixth Street Specialty Lending pays out 91.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Do analysts rate TSLX or ARCC?

Sixth Street Specialty Lending presently has a consensus price target of $23.28, suggesting a potential downside of 0.52%. Ares Capital has a consensus price target of $22.86, suggesting a potential upside of 7.26%. Given Ares Capital's higher possible upside, analysts plainly believe Ares Capital is more favorable than Sixth Street Specialty Lending.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sixth Street Specialty Lending	0 Sell rating(s)	1 Hold rating(s)	7 Buy rating(s)	1 Strong Buy rating(s)	3.00
Ares Capital	0 Sell rating(s)	2 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.78

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

70.3% of Sixth Street Specialty Lending shares are owned by institutional investors. Comparatively, 27.4% of Ares Capital shares are owned by institutional investors. 3.2% of Sixth Street Specialty Lending shares are owned by company insiders. Comparatively, 0.5% of Ares Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Does the media refer more to TSLX or ARCC?

In the previous week, Ares Capital had 19 more articles in the media than Sixth Street Specialty Lending. MarketBeat recorded 22 mentions for Ares Capital and 3 mentions for Sixth Street Specialty Lending. Sixth Street Specialty Lending's average media sentiment score of 1.29 beat Ares Capital's score of 1.07 indicating that Sixth Street Specialty Lending is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Sixth Street Specialty Lending	2 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ares Capital	18 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Positive

Which has more risk & volatility, TSLX or ARCC?

Sixth Street Specialty Lending has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Ares Capital has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Which has preferable valuation and earnings, TSLX or ARCC?

Ares Capital has higher revenue and earnings than Sixth Street Specialty Lending. Ares Capital is trading at a lower price-to-earnings ratio than Sixth Street Specialty Lending, 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
Sixth Street Specialty Lending	$242.97M	9.08	$220.02M	$2.01	11.64
Ares Capital	$2.99B	5.03	$1.52B	$2.05	10.40

Is TSLX or ARCC more profitable?

Ares Capital has a net margin of 44.94% compared to Sixth Street Specialty Lending's net margin of 39.56%. Sixth Street Specialty Lending's return on equity of 13.47% beat Ares Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Sixth Street Specialty Lending	39.56%	13.47%	6.17%
Ares Capital	44.94%	10.48%	5.00%

Summary

Sixth Street Specialty Lending beats Ares Capital on 11 of the 18 factors compared between the two stocks.