Quick verdict: ARCC vs BN in 2026

ARCC demonstrates a strong overall edge in this comparison, significantly outperforming BN across most fundamental metrics. It stands out as the clear growth leader with robust revenue expansion and superior profitability margins. For investors prioritizing value, ARCC also presents a more attractive proposition. While BN garners a slightly higher percentage of ‘Buy’ ratings from analysts and offers a marginally greater price target upside, ARCC’s underlying fundamentals, including its strong cash flow yield and lower valuation multiples, make a compelling case. Not investment advice.

ARCC vs BN: key metrics side by side

Full side-by-side comparison of ARCC and BN across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-27.

ARCC vs BN valuation comparison

In an ARCC vs BN valuation comparison, Ares Capital Corporation (ARCC) appears significantly more attractive based on traditional valuation multiples. ARCC trades at a P/E ratio of 10.05x, which is remarkably lower than Brookfield Corporation’s (BN) P/E of 87.05x. This vast difference suggests that investors are paying substantially less for each dollar of ARCC’s earnings compared to BN. Similarly, when examining the price-to-book (P/B) ratio, ARCC’s 0.91x indicates it trades below its book value, while BN trades at 2.38x, suggesting a premium.

Furthermore, the discounted cash flow (DCF) analysis presents a stark contrast, highlighting ARCC’s substantial undervaluation. The DCF model projects an impressive upside of +865.4% for ARCC, implying its current price of $18.67 is far below its intrinsic value. Conversely, BN’s DCF suggests a daunting -99.7% downside from its current price of $45.48, signaling extreme overvaluation according to this model. This crucial arcc vs bn fundamentals and valuation metric heavily favors ARCC, positioning it as a potentially much cheaper investment opportunity in 2026 compared to BN.

ARCC vs BN growth comparison

When assessing arcc vs bn stock comparison 2026 from a growth perspective, Ares Capital Corporation (ARCC) exhibits significantly stronger momentum. ARCC reported an impressive year-over-year revenue growth of +32.9%, indicating robust expansion in its operations. This strong top-line performance is a key indicator of a company’s ability to increase its market presence and underlying business activity. Such a high growth rate can be particularly appealing for investors looking for companies with dynamic expansion capabilities.

In contrast, Brookfield Corporation (BN) experienced a revenue decline of -11.5% year-over-year. This negative growth suggests challenges in its recent operational period, potentially stemming from market headwinds or strategic shifts. While BN operates on a much larger revenue base ($76.13B compared to ARCC’s $3.15B), its contraction contrasts sharply with ARCC’s aggressive expansion. Additionally, ARCC’s superior EBITDA margin of 68.51% compared to BN’s 43.04% further underscores its efficient growth, indicating that its expanding revenue is translating effectively into operational profit, giving ARCC a clear edge in terms of growth momentum.

ARCC vs BN profitability

Evaluating arcc vs bn profitability reveals a significant disparity, with Ares Capital Corporation (ARCC) demonstrating far superior margins. ARCC boasts an exceptional net margin of 56.11%, indicating that a substantial portion of its revenue translates directly into profit. This high level of profitability is characteristic of well-managed financial services firms, especially those with efficient capital deployment strategies. Coupled with an EBITDA margin of 68.51%, ARCC clearly excels at controlling operational costs and maximizing the earnings potential from its revenue streams.

Brookfield Corporation (BN), while a much larger entity by revenue, shows a comparatively modest net margin of 1.72% and an EBITDA margin of 43.04%. These figures suggest that BN operates with thinner profit margins, likely due to the nature of its diversified asset management and infrastructure businesses which can involve higher operational expenses and depreciation. Both companies currently report “N/A%” for Return on Equity (ROE), which means we cannot use this metric for direct comparison. However, ARCC’s robust free cash flow (FCF) yield of 8.52% versus BN’s negative FCF yield of -2.74% further solidifies ARCC’s position as the more profitable and cash-generative entity. This indicates ARCC is far more effective at converting its operations into available cash, a critical metric for financial health.

Analyst ratings: ARCC vs BN

When examining analyst sentiment for arcc vs bn stock comparison 2026, both Ares Capital Corporation (ARCC) and Brookfield Corporation (BN) receive favorable recommendations, though with nuanced differences. ARCC is covered by 32 analysts, with 78.1% issuing a ‘Buy’ rating. Their consensus price target for ARCC is $22, which suggests a potential upside of +17.8% from its current price of $18.67. This strong endorsement from a relatively large analyst pool indicates confidence in ARCC’s performance and future prospects.

Brookfield Corporation (BN), while covered by fewer analysts (9), shows an even higher percentage of ‘Buy’ ratings at 88.9%. The consensus price target for BN is $54.4, implying a potential upside of +19.6% from its current price of $45.48. This slightly higher consensus target upside and a greater proportion of ‘Buy’ ratings indicate that analysts, on average, view BN with marginally more optimism regarding its near-term price appreciation. Therefore, while both stocks are well-regarded, analysts appear to slightly prefer BN in terms of potential price target growth and overall positive sentiment.

Should I buy ARCC or BN stock in 2026?

Deciding should i buy arcc or bn stock 2026 involves weighing different investment objectives against the contrasting fundamentals of these two financial powerhouses. For growth-oriented investors, ARCC presents a compelling case due to its exceptional revenue growth of +32.9% year-over-year, which significantly outpaces BN’s -11.5% decline. This indicates ARCC’s strong operational momentum and capacity for expansion within its market, suggesting it might be better positioned for capital appreciation driven by business growth. Its superior profitability margins, including a 56.11% net margin and 68.51% EBITDA margin, further underscore its efficiency in converting revenue into profit, making it an attractive option for those seeking robust top-line and bottom-line expansion.

From a value investment perspective, ARCC appears to be the more undervalued opportunity based on key arcc vs bn fundamentals and valuation metrics. Its P/E ratio of 10.05x is substantially lower than BN’s 87.05x, implying that ARCC’s earnings are available at a much cheaper price. Furthermore, ARCC trades at a P/B ratio of 0.91x, below its book value, while BN trades above at 2.38x. The most striking difference lies in the DCF analysis, which estimates an impressive +865.4% upside for ARCC compared to a severe -99.7% downside for BN. This suggests that ARCC could offer a significant margin of safety and potential for long-term price appreciation for value investors in 2026.

For income-focused investors, neither ARCC nor BN currently offers a substantial dividend yield, but ARCC does edge out BN. ARCC has a dividend yield of 0.1%, which, while modest, is ten times higher than BN’s 0.01% yield. This indicates that ARCC, despite its strong growth and value propositions, also provides a slightly more meaningful return to shareholders through dividends. Ultimately, for investors considering arcc vs bn stock comparison 2026, ARCC demonstrates a superior blend of growth, value, and a modest income component based on the provided data. This is not investment advice; always conduct your own thorough research.

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FAQ: ARCC vs BN