FCRX vs ARCC

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

9% revenue growth year-over-year, versus 7. 2% for Crescent Capital BDC, Inc. (FCRX). Ares Capital Corporation (ARCC) offers the better valuation at 10. 2x trailing P/E (9. 9x forward), making it the more compelling value choice. Analysts rate Crescent Capital BDC, Inc. (FCRX) a "Buy" — based on 5 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, Ares Capital Corporation (ARCC) is the cheapest at 10.

2x versus Crescent Capital BDC, Inc. at 12. 6x. On forward P/E, Ares Capital Corporation is actually cheaper at 9. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Ares Capital Corporation wins at 0. 96x versus Crescent Capital BDC, Inc. 's 4. 54x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Ares Capital Corporation (ARCC) delivered a total return of +47.

0%, compared to +22. 2% for Crescent Capital BDC, Inc. (FCRX). Over 10 years, the gap is even starker: ARCC returned +139. 2% versus FCRX's +22. 2%. 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), Ares Capital Corporation (ARCC) is the lower-risk stock at 0.

77β versus Crescent Capital BDC, Inc. 's 1. 21β — meaning FCRX is approximately 58% more volatile than ARCC relative to the S&P 500. On balance sheet safety, Ares Capital Corporation (ARCC) carries a lower debt/equity ratio of 112% versus 118% for Crescent Capital BDC, Inc. — 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 7. 2% for Crescent Capital BDC, Inc. (FCRX). On earnings-per-share growth, the picture is similar: Crescent Capital BDC, Inc. grew EPS -14. 6% 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.

Ares Capital Corporation (ARCC) is the more profitable company, earning 41.

3% net margin versus 37. 3% for Crescent Capital BDC, Inc. — meaning it keeps 41. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FCRX leads at 77. 7% versus 69. 7% for ARCC. At the gross margin level — before operating expenses — FCRX leads at 100. 0%, 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, Ares Capital Corporation (ARCC) is the more undervalued stock at a PEG of 0. 96x versus Crescent Capital BDC, Inc. 's 4. 54x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Ares Capital Corporation (ARCC) trades at 9. 9x forward P/E versus 15. 1x for Crescent Capital BDC, Inc. — 5. 2x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

Crescent Capital BDC, Inc. (FCRX) offers the highest yield at 8. 1%, versus 2. 0% for Ares Capital Corporation (ARCC).

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. 2% 10Y return). Both have compounded well over 10 years (ARCC: +139. 2%, FCRX: +22. 2%), 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: FCRX is a small-cap deep-value stock; ARCC is a mid-cap high-growth stock. 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.