ARCC vs. UDR, KIM, BIP, RGA, RYAN, EQH, BEN, WPC, CNA, and AMH
Should you be buying Ares Capital stock or one of its competitors? The main competitors of Ares Capital include UDR (UDR), Kimco Realty (KIM), Brookfield Infrastructure Partners (BIP), Reinsurance Group of America (RGA), Ryan Specialty (RYAN), Equitable (EQH), Franklin Resources (BEN), W. P. Carey (WPC), CNA Financial (CNA), and American Homes 4 Rent (AMH). These companies are all part of the "finance" sector.
Ares Capital (NASDAQ:ARCC) and UDR (NYSE:UDR) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their community ranking, valuation, media sentiment, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
27.4% of Ares Capital shares are held by institutional investors. Comparatively, 97.8% of UDR shares are held by institutional investors. 0.6% of Ares Capital shares are held by insiders. Comparatively, 3.7% of UDR shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Ares Capital presently has a consensus price target of $21.43, suggesting a potential upside of 4.33%. UDR has a consensus price target of $41.44, suggesting a potential upside of 10.31%. Given UDR's higher probable upside, analysts clearly believe UDR is more favorable than Ares Capital.
Ares Capital has a net margin of 58.22% compared to UDR's net margin of 27.81%. Ares Capital's return on equity of 12.50% beat UDR's return on equity.
Ares Capital has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, UDR has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 9.3%. UDR pays an annual dividend of $1.70 per share and has a dividend yield of 4.5%. Ares Capital pays out 71.9% of its earnings in the form of a dividend. UDR pays out 123.2% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
UDR received 40 more outperform votes than Ares Capital when rated by MarketBeat users. However, 62.50% of users gave Ares Capital an outperform vote while only 55.28% of users gave UDR an outperform vote.
In the previous week, UDR had 5 more articles in the media than Ares Capital. MarketBeat recorded 36 mentions for UDR and 31 mentions for Ares Capital. Ares Capital's average media sentiment score of 0.44 beat UDR's score of 0.20 indicating that Ares Capital is being referred to more favorably in the media.
Ares Capital has higher revenue and earnings than UDR. Ares Capital is trading at a lower price-to-earnings ratio than UDR, indicating that it is currently the more affordable of the two stocks.
Summary
Ares Capital beats UDR on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ARCC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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