How this ARCC vs BN comparison is calculated

All metrics are based on trailing twelve months (TTM) financial data, consensus analyst estimates, and standardized valuation ratios. Data is sourced from Financial Modeling Prep and SEC EDGAR. Figures are normalized to ensure a fair comparison between Ares Capital Corporation and Brookfield Corporation. Analyst price targets and ratings are aggregated from Wall Street consensus as of 2026-05-18.

Quick verdict: Ares Capital Corporation vs Brookfield Corporation in 2026

Ares Capital Corporation emerges as the growth leader, showcasing a robust revenue expansion and superior margins compared to Brookfield Corporation. While ARCC also presents a more attractive relative valuation, BN holds the edge in analyst sentiment, with a higher percentage of buy ratings and greater implied upside to its price target. Not investment advice.

Ares Capital Corporation vs Brookfield Corporation: key metrics side by side

A full side-by-side look at Ares Capital Corporation (ARCC) and Brookfield Corporation (BN) across earnings multiples, profitability, revenue momentum, and analyst sentiment — data updated 2026-05-18.

Relative valuation: ARCC vs BN

When assessing the relative valuation of these two financial services giants, Ares Capital Corporation presents a significantly more appealing profile. ARCC currently trades at a modest price-to-earnings multiple of 11.8x, representing a substantial fundamental discount compared to Brookfield Corporation’s considerably higher earnings multiple of 85.36x. This stark difference in the P/E ratio suggests that investors are paying a much lower premium for each dollar of ARCC’s earnings. Furthermore, the price-to-book ratio reinforces this observation, with Ares Capital Corporation at 0.96x, indicating it trades below its book value, while Brookfield Corporation commands a P/B of 2.43x.

Delving deeper into intrinsic value, the Discounted Cash Flow (DCF) analysis projects a remarkable upside of +762.9% for Ares Capital Corporation, implying that its current market price may be significantly undervalued based on future cash flow generation. In sharp contrast, Brookfield Corporation’s DCF suggests a negative upside of -112.3%, indicating potential overvaluation or significant challenges in its future cash flow projections. Based on current consensus data and these key valuation metrics, Ares Capital Corporation clearly carries a more attractive valuation for investors seeking companies trading at a discount to their earnings and intrinsic worth. This pronounced divergence in valuation metrics makes ARCC a compelling candidate for value-oriented portfolios.

Revenue momentum: Ares Capital Corporation vs Brookfield Corporation

A critical examination of revenue momentum reveals Ares Capital Corporation as the clear frontrunner in topline expansion. ARCC reported an impressive year-over-year revenue growth of +32.9%, demonstrating strong market penetration and operational efficiency. This robust expansion signals a healthy demand for Ares Capital Corporation’s services and effective execution of its business strategies. Conversely, Brookfield Corporation experienced a contraction in its sales trajectory, with revenue growth recorded at -11.5%. This negative growth rate for BN could be indicative of various factors, including market headwinds, strategic shifts, or increased competition impacting its core businesses.

Beyond just the revenue figures, a look at operational profitability further distinguishes the two. Ares Capital Corporation boasts a formidable EBITDA margin of 77.81%, reflecting exceptional efficiency in converting sales into pre-tax earnings. This high margin indicates ARCC’s strong control over its operating costs and a robust business model. Brookfield Corporation, while still profitable, reports an EBITDA margin of 40.58%, which is considerably lower than its peer. This gap in operational efficiency highlights a fundamental divergence in how effectively each company manages its costs relative to its revenue. While forward estimates may vary depending on future market conditions, the current data strongly suggests Ares Capital Corporation possesses a significantly stronger growth trajectory and superior operational leverage, though this gap may not persist if market conditions or strategic initiatives shift.

Profitability and cash generation: ARCC vs BN

In terms of pure profitability, Ares Capital Corporation demonstrates vastly superior efficiency compared to Brookfield Corporation. ARCC achieved an impressive net margin of 43.69%, meaning nearly half of every revenue dollar translates directly into profit. This high level of net income efficiency underscores the strong earnings power and effective cost management within Ares Capital Corporation’s operations. Brookfield Corporation, on the other hand, recorded a significantly lower net margin of 1.74%, indicating that a much smaller portion of its extensive revenue base ultimately converts into net profit. This disparity suggests differing business models, with ARCC likely operating in a higher-margin segment or possessing a more streamlined cost structure.

Regarding cash conversion, Ares Capital Corporation also stands out. ARCC generated a positive free cash flow yield of 7.91%, showcasing its ability to produce substantial cash relative to its market capitalization, which is crucial for financial flexibility and potential shareholder returns. In stark contrast, Brookfield Corporation reported a negative free cash flow yield of -7.14%, implying that the company is currently consuming cash rather than generating it after operating expenses and capital expenditures. This negative cash flow could be a concern for investors, signaling potential reliance on external financing or significant reinvestment needs. While both companies have ‘N/A%’ for Return on Equity (ROE), making a direct comparison on that specific metric impossible from the provided data, the robust net margins and positive free cash flow yield of ARCC clearly positions it as the stronger performer in generating cash relative to its price and overall profitability.

Wall Street view: Ares Capital Corporation vs Brookfield Corporation analyst ratings

The consensus outlook from Wall Street analysts provides an interesting perspective, with both Ares Capital Corporation and Brookfield Corporation receiving ‘Buy’ ratings overall, yet differing in their specific levels of optimism. Brookfield Corporation appears to be the slightly greater analyst favourite, with 88.9% of polled analysts recommending a ‘Buy’ on BN stock. These analysts have set a consensus price target of $56 for Brookfield Corporation, implying a significant potential upside of +23.0% from its current trading price. This higher percentage of ‘Buy’ ratings and greater implied upside points to a stronger belief in the future performance and appreciation potential of Brookfield Corporation among the analyst community.

Conversely, Ares Capital Corporation also enjoys a favorable Wall Street sentiment, with 78.1% of analysts holding a ‘Buy’ rating for ARCC. While this percentage is slightly lower than that for Brookfield Corporation, it still indicates a strong positive view from the analyst community. The consensus price objective for Ares Capital Corporation is $21.88, which suggests an anticipated price target upside of +15.8%. While respectable, this projected gain is less pronounced than that forecast for BN. It’s important to remember that analyst targets may vary depending on future estimate revisions and market dynamics, but currently, Brookfield Corporation receives a slightly more enthusiastic endorsement and higher potential upside according to the aggregated analyst reports.

Which investor profile fits ARCC vs BN?

For the growth-oriented investor, Ares Capital Corporation (ARCC) appears to be the more compelling choice based on the current financial data. Its exceptional revenue growth of +32.9% year-over-year clearly outperforms Brookfield Corporation, which experienced a revenue contraction of -11.5%. This strong topline expansion for ARCC signals a dynamic business with increasing market presence and effective operational execution, making it attractive for those prioritizing rapid company expansion and future earnings potential. While both operate in financial services, Ares Capital Corporation’s momentum makes it a better fit for portfolios seeking high-growth opportunities, though investors should always consider forward estimates and overall market trends.

Value investors, on the other hand, would likely find Ares Capital Corporation to be significantly more appealing. ARCC currently trades at a highly attractive earnings multiple of just 11.8x, a stark contrast to Brookfield Corporation’s considerably higher P/E ratio of 85.36x. This fundamental discount suggests that ARCC’s shares are available at a much lower price relative to its earnings. Furthermore, the Discounted Cash Flow (DCF) model shows a remarkable positive upside of +762.9% for Ares Capital Corporation, implying substantial undervaluation. In comparison, Brookfield Corporation’s DCF shows a negative upside of -112.3%, pointing to potential overvaluation relative to its intrinsic worth. This profound divergence makes Ares Capital Corporation a clear preference for investors hunting for undervalued assets.

Lastly, for income investors primarily focused on dividend yield, Ares Capital Corporation also holds a marginal lead, though both stocks offer very low yields. ARCC provides a dividend yield of 0.1%, which, while modest, is still ten times higher than Brookfield Corporation’s 0.01% yield. Neither stock would typically be classified as a high-yield income play, but for those who prefer even a token dividend, Ares Capital Corporation edges out Brookfield Corporation. However, investors prioritizing substantial regular income would likely need to look elsewhere. This is not investment advice. Always do your own research.

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