CGBD vs ARCC

For growth investors, Ares Capital Corporation (ARCC) is the stronger pick with 32.

9% revenue growth year-over-year, versus -2. 9% for Carlyle Secured Lending, Inc. (CGBD). Carlyle Secured Lending, Inc. (CGBD) offers the better valuation at 7. 5x trailing P/E (8. 2x forward), making it the more compelling value choice. Analysts rate Ares Capital Corporation (ARCC) a "Buy" — based on 32 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Carlyle Secured Lending, Inc.

(CGBD) is the cheapest at 7. 5x versus Ares Capital Corporation at 10. 3x. On forward P/E, Carlyle Secured Lending, Inc. is actually cheaper at 8. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Carlyle Secured Lending, Inc. wins at 0. 90x versus Ares Capital Corporation's 0. 97x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Carlyle Secured Lending, Inc.

(CGBD) delivered a total return of +51. 3%, compared to +49. 5% for Ares Capital Corporation (ARCC). Over 10 years, the gap is even starker: ARCC returned +139. 7% versus CGBD's +48. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Carlyle Secured Lending, Inc.

(CGBD) is the lower-risk stock at 0. 61β versus Ares Capital Corporation's 0. 77β — meaning ARCC is approximately 25% more volatile than CGBD relative to the S&P 500. On balance sheet safety, Carlyle Secured Lending, Inc. (CGBD) carries a lower debt/equity ratio of 107% versus 112% for Ares Capital Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Ares Capital Corporation (ARCC) is pulling ahead at 32.

9% versus -2. 9% for Carlyle Secured Lending, Inc. (CGBD). On earnings-per-share growth, the picture is similar: Carlyle Secured Lending, Inc. grew EPS -3. 7% year-over-year, compared to -23. 8% for Ares Capital Corporation. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Carlyle Secured Lending, Inc.

(CGBD) is the more profitable company, earning 53. 0% net margin versus 41. 3% for Ares Capital Corporation — meaning it keeps 53. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ARCC leads at 69. 7% versus 54. 7% for CGBD. At the gross margin level — before operating expenses — ARCC leads at 75. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Carlyle Secured Lending, Inc. (CGBD) is the more undervalued stock at a PEG of 0. 90x versus Ares Capital Corporation's 0. 97x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Carlyle Secured Lending, Inc. (CGBD) trades at 8. 2x forward P/E versus 10. 0x for Ares Capital Corporation — 1. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CGBD: 26. 3% to $15. 00.

All stocks in this comparison pay dividends.

Ares Capital Corporation (ARCC) offers the highest yield at 2. 0%, versus 0. 2% for Carlyle Secured Lending, Inc. (CGBD).

For long-horizon retirement investors, Ares Capital Corporation (ARCC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

77), 2. 0% yield, +139. 7% 10Y return). Both have compounded well over 10 years (ARCC: +139. 7%, CGBD: +48. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: CGBD is a small-cap deep-value stock; ARCC is a mid-cap high-growth stock. ARCC pays a dividend while CGBD does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.