Quick verdict: ARCC vs BEN in 2026

In a head-to-head comparison for 2026, Ares Capital Corporation (ARCC) clearly holds a significant edge over Franklin Resources, Inc. (BEN) across most fundamental and valuation metrics. ARCC emerges as the strong growth leader with substantially higher revenue growth, while also standing out as the value leader due to its more attractive valuation ratios and impressive DCF upside. Furthermore, ARCC maintains a distinct advantage in profitability, showcasing superior net and EBITDA margins. It is also the undeniable analyst favorite, garnering a much higher percentage of ‘Buy’ ratings and a positive price target, indicating far greater potential upside compared to BEN’s negative target. Not investment advice.

ARCC vs BEN: key metrics side by side

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

ARCC vs BEN valuation comparison

When comparing ARCC vs BEN valuation, Ares Capital Corporation (ARCC) presents a considerably more attractive investment profile based on traditional valuation metrics. ARCC trades at a compelling Price-to-Earnings (P/E) ratio of 9.33x, which is less than half of Franklin Resources, Inc.’s (BEN) P/E of 18.78x. This suggests that investors are paying significantly less for each dollar of ARCC’s earnings compared to BEN, indicating ARCC could be undervalued relative to its profitability. Furthermore, ARCC’s Price-to-Book (P/B) ratio of 0.97x is below 1, implying it trades below its book value, a characteristic often sought by value investors. In contrast, BEN’s P/B ratio stands at 1.26x, valuing the company above its book assets.

The Discounted Cash Flow (DCF) analysis further reinforces ARCC’s strong valuation appeal. ARCC shows an extraordinary DCF upside of +841.5%, suggesting a substantial intrinsic value far exceeding its current market price of $18.92. This dramatic potential upside points to a significant undervaluation that could attract long-term investors. BEN, while also showing a positive DCF upside of +11.4% from its current price of $29.46, does not come close to the magnitude of ARCC’s potential. Therefore, for investors prioritizing a more favorable ARCC vs BEN valuation, Ares Capital Corporation undeniably appears to be the cheaper stock with greater potential for price appreciation based on these metrics as of 2026-04-29.

ARCC vs BEN growth comparison

In terms of ARCC vs BEN growth comparison, Ares Capital Corporation (ARCC) demonstrates markedly superior growth momentum compared to Franklin Resources, Inc. (BEN). ARCC reported a robust year-over-year revenue growth of +32.9%, a substantial figure that indicates strong operational expansion and increasing market penetration. This aggressive top-line growth positions ARCC as a compelling option for growth-oriented investors looking for companies that are rapidly expanding their revenue base. Such high growth rates often signal effective business strategies, successful new initiatives, or a favorable market environment that the company is capitalizing on effectively. This strong performance underpins a more dynamic outlook for ARCC’s future earnings potential.

Conversely, Franklin Resources, Inc. (BEN) recorded a more modest revenue growth of +3.5% year-over-year. While positive, this growth rate is considerably lower than ARCC’s, suggesting a more mature or slower-growing operational environment. When evaluating the ARCC vs BEN growth prospects, ARCC’s ability to achieve such high revenue expansion alongside impressive margins (as detailed in the profitability section) suggests a highly efficient growth engine. This strong fundamental performance, combined with analyst optimism discussed later, points to ARCC possessing stronger momentum and a more promising trajectory for continued expansion in the foreseeable future.

ARCC vs BEN profitability

Examining ARCC vs BEN profitability reveals a stark difference in operational efficiency and earnings power, with Ares Capital Corporation (ARCC) significantly outperforming Franklin Resources, Inc. (BEN). ARCC boasts an exceptional net profit margin of 58.64%, meaning that for every dollar of revenue, nearly 59 cents translate into profit. This is a testament to ARCC’s highly efficient business model and strong cost management. In addition to this, ARCC’s EBITDA margin stands at a robust 53.89%, further highlighting its operational profitability before accounting for depreciation, amortization, interest, and taxes. These figures indicate that ARCC effectively converts its revenue into earnings, a crucial factor for sustainable long-term value creation.

In contrast, Franklin Resources, Inc. (BEN) reported a net profit margin of 8.99%, which, while positive, is considerably lower than ARCC’s. Its EBITDA margin is also significantly less at 19.58%. While both companies reported N/A% for Return on Equity (ROE), the Free Cash Flow (FCF) yield provides another important measure of profitability and cash generation. ARCC’s FCF yield of 8.42% indicates a strong ability to generate cash flow relative to its market capitalization, surpassing BEN’s FCF yield of 6.11%. This suggests that ARCC is more effective at converting its profits into readily available cash that can be used for reinvestment, debt reduction, or shareholder returns. Therefore, in an ARCC vs BEN profitability assessment, ARCC clearly generates more cash and is fundamentally a more profitable enterprise.

Analyst ratings: ARCC vs BEN

The analyst consensus for ARCC vs BEN further solidifies Ares Capital Corporation’s (ARCC) position as the preferred stock among financial professionals. Out of 32 analysts covering ARCC, an overwhelming 78.1% have issued a ‘Buy’ rating, resulting in a strong consensus of ‘Buy’. The average price target set by these analysts is $22, which represents a significant upside of +16.3% from ARCC’s current price of $18.92. This strong vote of confidence from a large number of analysts suggests a widespread belief in ARCC’s continued performance, growth prospects, and potential for stock price appreciation. The positive target price indicates that analysts anticipate the stock to rise from its current levels, offering an attractive entry point for investors.

Conversely, the sentiment for Franklin Resources, Inc. (BEN) is considerably more reserved. Of the 27 analysts covering BEN, only 22.2% recommend a ‘Buy’ rating, leading to a ‘Hold’ consensus. The analyst consensus price target for BEN is $25, which, surprisingly, represents a downside of -15.1% from its current price of $29.46. This negative price target suggests that analysts, on average, expect BEN’s stock price to decline, reflecting concerns about its future performance or valuation. When considering which stock analysts prefer in an ARCC vs BEN stock comparison for 2026, ARCC clearly stands out with its strong ‘Buy’ consensus and positive upside potential, making it the favored choice among investment professionals.

Should I buy ARCC or BEN stock in 2026?

Deciding should I buy ARCC or BEN stock in 2026 involves weighing various factors, but Ares Capital Corporation (ARCC) consistently emerges as the stronger candidate across multiple investment strategies. For growth investors, ARCC is highly appealing due to its impressive year-over-year revenue growth of 32.9%, vastly outstripping BEN’s 3.5%. This significant top-line expansion indicates robust business momentum and a capacity for continued market share gains or successful strategic initiatives, making it an attractive choice for those seeking dynamic growth opportunities in their portfolio.

Value investors examining ARCC vs BEN fundamentals and valuation will find ARCC particularly compelling. It trades at a much lower P/E ratio of 9.33x compared to BEN’s 18.78x, suggesting it is significantly undervalued relative to its earnings. Furthermore, ARCC’s P/B ratio of 0.97x indicates it trades below book value. The DCF analysis provides an astounding +841.5% upside for ARCC, highlighting a substantial potential for intrinsic value appreciation, whereas BEN offers a more modest +11.4% upside. These metrics collectively paint a picture of ARCC as a value play with substantial latent potential.

For income-focused investors, ARCC also holds an advantage, offering a dividend yield of 0.1% compared to BEN’s 0.04%. While both yields are relatively low, ARCC provides a slightly better return through dividends, complementing its strong growth and value characteristics. Considering the comprehensive ARCC vs BEN stock comparison 2026, ARCC presents a more robust investment case across growth, value, and income perspectives based on the available data. This is not investment advice, and investors should always conduct their own thorough research before making any investment decisions.

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FAQ: ARCC vs BEN