Quick verdict: ARCC vs BLK in 2026

Overall, Ares Capital Corporation (ARCC) appears to have a distinct edge over BlackRock, Inc. (BLK) based on several key financial metrics as of 2026-04-29. ARCC stands out as the growth leader, boasting a significantly higher revenue growth rate, and also emerges as the value leader due to its considerably lower valuation multiples. Furthermore, ARCC demonstrates superior profitability, leading in net and EBITDA margins. While analysts have a “Buy” consensus for both, BLK offers a higher analyst price target upside, though ARCC is slightly favored by a higher percentage of buy ratings and a more compelling discounted cash flow valuation. Not investment advice.

ARCC vs BLK: key metrics side by side

Full side-by-side comparison of ARCC and BLK across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-29.

ARCC vs BLK valuation comparison

In an ARCC vs BLK valuation comparison, Ares Capital Corporation presents itself as the more attractively valued stock. ARCC trades at a notably lower Price-to-Earnings (P/E) ratio of 9.33x, which is significantly below BlackRock’s P/E of 26.06x. This substantial difference indicates that investors are paying considerably less for each dollar of earnings with ARCC compared to BLK. Further reinforcing ARCC’s value proposition, its Price-to-Book (P/B) ratio stands at a compelling 0.97x, indicating it trades below its book value, whereas BLK trades at a much higher 2.92x P/B ratio.

The discounted cash flow (DCF) analysis provides a dramatic difference, with ARCC showing an impressive implied upside of +841.5%. This suggests that, based on future cash flow projections, ARCC is significantly undervalued by the market. In stark contrast, BLK’s DCF calculation indicates a negative upside of -47.1%, implying that the stock may be overvalued at its current price of $1049.76. For investors prioritizing valuation metrics, ARCC clearly offers a more compelling entry point and potential for price appreciation based on fundamental value.

ARCC vs BLK growth comparison

When evaluating ARCC vs BLK on growth, Ares Capital Corporation exhibits stronger recent momentum. ARCC reported a robust year-over-year revenue growth of +32.9%, significantly outpacing BlackRock’s respectable but comparatively lower growth of +18.7%. This indicates that ARCC is expanding its top line at a much faster rate, reflecting strong operational performance and potentially a more dynamic market position in its segment of financial services.

While BlackRock, with its massive revenue of $24.22 billion, is a much larger enterprise than ARCC, which generated $3.15 billion in revenue, the superior growth rate of ARCC suggests a higher potential for capital appreciation driven by earnings expansion. Both companies operate within the financial services sector, but ARCC’s exceptional revenue growth highlights its ability to capture market share and increase its income streams more aggressively. This differential in growth momentum is a critical factor for investors looking for companies with accelerating financial performance.

ARCC vs BLK profitability

In terms of profitability, Ares Capital Corporation substantially outperforms BlackRock. ARCC boasts an exceptional net margin of 58.64%, which is more than double BlackRock’s net margin of 24.33%. This demonstrates ARCC’s superior efficiency in converting revenue into actual profit, suggesting tighter cost control and stronger pricing power within its business model. Furthermore, ARCC also leads significantly in EBITDA margin, reporting 53.89% compared to BLK’s 38.07%, reinforcing its operational efficiency before accounting for depreciation, amortization, interest, and taxes.

When it comes to generating cash, ARCC again shows a clear advantage with a Free Cash Flow (FCF) yield of 8.42%, considerably higher than BLK’s 2.2%. A higher FCF yield indicates that ARCC is generating more cash relative to its market capitalization, which can be used for reinvestment, debt reduction, or shareholder returns. Although the Return on Equity (ROE) data is not available for either company, the comprehensive strength in net margin, EBITDA margin, and FCF yield firmly establishes ARCC as the more profitable enterprise compared to BLK.

Analyst ratings: ARCC vs BLK

Analyst sentiment for both ARCC and BLK leans positively, with both stocks holding a consensus “Buy” rating. Ares Capital Corporation is covered by 32 analysts, with 78.1% issuing a “Buy” recommendation, leading to a consensus price target of $22, representing a potential upside of +16.3% from its current price of $18.92. This strong endorsement is further supported by an “A-” FMP rating, signaling a robust fundamental outlook from a quantitative perspective.

BlackRock, Inc. is covered by a slightly higher number of analysts, 33 in total, with 75.8% recommending a “Buy.” This results in a consensus price target of $1311.78, which offers a more substantial potential upside of +25.0% from its current price of $1049.76. Despite the higher target upside, BLK receives a “C-” FMP rating, suggesting potential underlying financial concerns or a less compelling fundamental score. While BLK’s target implies greater percentage appreciation, ARCC’s slightly higher buy rating percentage and superior FMP rating indicate a more universally strong underlying financial health perceived by a broader set of evaluators.

Should I buy ARCC or BLK stock in 2026?

Deciding whether to buy ARCC or BLK stock in 2026 depends heavily on an investor’s specific objectives and risk tolerance. For growth-oriented investors, Ares Capital Corporation (ARCC) appears to be the more compelling choice. With a revenue growth rate of +32.9% year-over-year, ARCC is expanding its top line significantly faster than BlackRock (BLK), which reported +18.7% growth. This robust growth, coupled with exceptional profitability metrics like a 58.64% net margin and 53.89% EBITDA margin, suggests ARCC has stronger operational momentum and the potential for greater future earnings expansion, making it a strong contender for those prioritizing growth.

For value investors, ARCC stands out as the clear winner. Its valuation multiples are substantially more attractive, with a Price-to-Earnings (P/E) ratio of just 9.33x compared to BLK’s 26.06x, and a Price-to-Book (P/B) ratio of 0.97x, indicating it trades below its intrinsic book value. Furthermore, ARCC shows a remarkable +841.5% upside according to discounted cash flow (DCF) analysis, strongly suggesting significant undervaluation. In contrast, BLK’s DCF analysis indicates a -47.1% downside, pointing to potential overvaluation. Therefore, for investors seeking a stock trading at a discount to its fundamental value with substantial potential for price correction upwards, ARCC is the stronger candidate among the two.

Income-focused investors will also find ARCC more appealing. ARCC offers a dividend yield of 0.1%, which, while modest, is five times higher than BlackRock’s dividend yield of 0.02%. This makes ARCC the better option for those looking to generate some level of passive income from their investments in the financial services sector. Considering ARCC’s superior growth, compelling valuation, and higher dividend yield across multiple investment strategies, it generally presents a more attractive profile than BLK for potential investors in 2026. This is not investment advice; please conduct your own thorough research.

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