SAT
Saratoga Investment Corp 6.00%
Asset Management
Market Cap$349M
5Y Perf.+1.5%
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Stock Comparison
SAT vs ARCC
Revenue, margins, valuation, and 5-year total return — side by side.
ARCC
Ares Capital Corporation
Asset Management
Market Cap$13.76B
5Y Perf.-1.1%
SAT vs ARCC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | SAT | ARCC |
|---|---|---|
| Industry | Asset Management | Asset Management |
| Market Cap | $349M | $13.76B |
| Revenue (TTM) | $94M | $3.15B |
| Net Income (TTM) | $39M | $1.15B |
| Gross Margin | 44.7% | 75.7% |
| Operating Margin | 33.9% | 69.7% |
| Forward P/E | 10.1x | 10.0x |
| Total Debt | $782M | $15.99B |
| Cash & Equiv. | $148M | $924M |
SAT vs ARCC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
SAT
ARCC
| Stock | May 22 | May 26 | Return |
|---|---|---|---|
| Saratoga Investment… (SAT) | 100 | 101.5 | +1.5% |
| Ares Capital Corpor… (ARCC) | 100 | 98.9 | -1.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: SAT vs ARCC
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: SAT leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Ares Capital Corporation is the stronger pick specifically for profitability and margin quality and operational efficiency and capital deployment. As sector peers, any of these can serve as alternatives in the same allocation.
SAT
Saratoga Investment Corp 6.00%
The Banking Pick
SAT carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 4 yrs, beta 0.56, yield 11.7%
- Rev growth 35.4%, EPS growth 184.5%
- Lower volatility, beta 0.56, current ratio 27.93x
Best for: income & stability and growth exposure
ARCC
Ares Capital Corporation
The Banking Pick
ARCC is the clearest fit if your priority is long-term compounding.
- 139.7% 10Y total return vs SAT's 25.3%
- Efficiency ratio 0.1% vs SAT's 0.1% (lower = leaner)
- Efficiency ratio 0.1% vs SAT's 0.1%
Best for: long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | SAT | 35.4% NII/revenue growth vs ARCC's 32.9% |
| Value | SAT | Better valuation composite |
| Quality / Margins | ARCC | Efficiency ratio 0.1% vs SAT's 0.1% (lower = leaner) |
| Stability / Safety | SAT | Beta 0.56 vs ARCC's 0.77 |
| Dividends | SAT | 11.7% yield, 4-year raise streak, vs ARCC's 2.0% |
| Momentum (1Y) | SAT | +8.1% vs ARCC's +1.9% |
| Efficiency (ROA) | ARCC | Efficiency ratio 0.1% vs SAT's 0.1% |
SAT vs ARCC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLARCCLAGGINGSAT
SATSaratoga Investment C…
2leads
ARCCAres Capital Corporat…
3leads
6 Total Categories
CATEGORYLEADERvs SATMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ARCC3/5
Valuation MetricsMultiples, price ratios, and targets
Tied
—
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ARCC5/9
Total Returns1Y, 3Y, 5Y total returns with dividends
ARCC4/6
Risk & VolatilityBeta, volatility, and downside exposure
SAT2/2
Analyst OutlookRatings, price targets, and dividends
SAT2/2
Income & Cash Flow (Last 12 Months)
ARCC leads this category, winning 3 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
ARCC is the larger business by revenue, generating $3.1B annually — 33.4x SAT's $94M. ARCC is the more profitable business, keeping 41.3% of every revenue dollar as net income compared to SAT's 29.8%.
| Metric | SATSaratoga Investme… | ARCCAres Capital Corp… |
|---|---|---|
| RevenueTrailing 12 months | $94M | $3.1B |
| EBITDAEarnings before interest/tax | $1.3B | $2.0B |
| Net IncomeAfter-tax profit | $39M | $1.1B |
| Free Cash FlowCash after capex | $23M | $1.1B |
| Gross MarginGross profit ÷ Revenue | +44.7% | +75.7% |
| Operating MarginEBIT ÷ Revenue | +33.9% | +69.7% |
| Net MarginNet income ÷ Revenue | +29.8% | +41.3% |
| FCF MarginFCF ÷ Revenue | +2.1% | +36.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +15.6% | -63.9% |
ARCC leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
Evenly matched — SAT and ARCC each lead in 3 of 6 comparable metrics.
Valuation Metrics
At 10.3x trailing earnings, ARCC trades at a 17% valuation discount to SAT's 12.4x P/E. On an enterprise value basis, ARCC's 13.2x EV/EBITDA is more attractive than SAT's 30.7x.
| Metric | SATSaratoga Investme… | ARCCAres Capital Corp… |
|---|---|---|
| Market CapShares × price | $349M | $13.8B |
| Enterprise ValueMkt cap + debt − cash | $983M | $28.8B |
| Trailing P/EPrice ÷ TTM EPS | 12.43x | 10.30x |
| Forward P/EPrice ÷ next-FY EPS est. | 10.12x | 10.02x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.00x |
| EV / EBITDAEnterprise value multiple | 30.75x | 13.16x |
| Price / SalesMarket cap ÷ Revenue | 3.71x | 4.37x |
| Price / BookPrice ÷ Book value/share | 0.89x | 0.94x |
| Price / FCFMarket cap ÷ FCF | 1.77x | 12.05x |
Evenly matched — SAT and ARCC each lead in 3 of 6 comparable metrics.
Profitability & Efficiency
ARCC leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
SAT delivers a 9.3% return on equity — every $100 of shareholder capital generates $9 in annual profit, vs $8 for ARCC. ARCC carries lower financial leverage with a 1.12x debt-to-equity ratio, signaling a more conservative balance sheet compared to SAT's 1.99x. On the Piotroski fundamental quality scale (0–9), SAT scores 8/9 vs ARCC's 4/9, reflecting strong financial health.
| Metric | SATSaratoga Investme… | ARCCAres Capital Corp… |
|---|---|---|
| ROE (TTM)Return on equity | +9.3% | +8.1% |
| ROA (TTM)Return on assets | +3.2% | +3.8% |
| ROICReturn on invested capital | +2.0% | +5.7% |
| ROCEReturn on capital employed | +2.7% | +7.5% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 4 |
| Debt / EquityFinancial leverage | 1.99x | 1.12x |
| Net DebtTotal debt minus cash | $634M | $15.1B |
| Cash & Equiv.Liquid assets | $148M | $924M |
| Total DebtShort + long-term debt | $782M | $16.0B |
| Interest CoverageEBIT ÷ Interest expense | 0.83x | 2.98x |
ARCC leads this category, winning 5 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
ARCC leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ARCC five years ago would be worth $14,948 today (with dividends reinvested), compared to $12,526 for SAT. Over the past 12 months, SAT leads with a +8.1% total return vs ARCC's +1.9%. The 3-year compound annual growth rate (CAGR) favors ARCC at 10.6% vs SAT's 8.7% — a key indicator of consistent wealth creation.
| Metric | SATSaratoga Investme… | ARCCAres Capital Corp… |
|---|---|---|
| YTD ReturnYear-to-date | +2.6% | -3.9% |
| 1-Year ReturnPast 12 months | +8.1% | +1.9% |
| 3-Year ReturnCumulative with dividends | +28.5% | +35.3% |
| 5-Year ReturnCumulative with dividends | +25.3% | +49.5% |
| 10-Year ReturnCumulative with dividends | +25.3% | +139.7% |
| CAGR (3Y)Annualised 3-year return | +8.7% | +10.6% |
ARCC leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
SAT leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
SAT is the less volatile stock with a 0.56 beta — it tends to amplify market swings less than ARCC's 0.77 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SAT currently trades 99.4% from its 52-week high vs ARCC's 81.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SATSaratoga Investme… | ARCCAres Capital Corp… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.56x | 0.77x |
| 52-Week HighHighest price in past year | $25.27 | $23.42 |
| 52-Week LowLowest price in past year | $6.95 | $17.40 |
| % of 52W HighCurrent price vs 52-week peak | +99.4% | +81.8% |
| RSI (14)Momentum oscillator 0–100 | 76.7 | 60.6 |
| Avg Volume (50D)Average daily shares traded | 10K | 7.5M |
SAT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
SAT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
For income investors, SAT offers the higher dividend yield at 11.66% vs ARCC's 2.00%.
| Metric | SATSaratoga Investme… | ARCCAres Capital Corp… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Buy |
| Price TargetConsensus 12-month target | — | $21.88 |
| # AnalystsCovering analysts | — | 32 |
| Dividend YieldAnnual dividend ÷ price | +11.7% | +2.0% |
| Dividend StreakConsecutive years of raises | 4 | 0 |
| Dividend / ShareAnnual DPS | $2.93 | $0.38 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
SAT leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
ARCC leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). SAT leads in 2 (Risk & Volatility, Analyst Outlook). 1 tied.
Best OverallAres Capital Corporation (ARCC)Leads 3 of 6 categories
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SAT vs ARCC: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is SAT or ARCC a better buy right now?
For growth investors, Saratoga Investment Corp 6.
00% (SAT) is the stronger pick with 35. 4% revenue growth year-over-year, versus 32. 9% for Ares Capital Corporation (ARCC). Ares Capital Corporation (ARCC) offers the better valuation at 10. 3x trailing P/E (10. 0x 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.
02Which has the better valuation — SAT or ARCC?
On trailing P/E, Ares Capital Corporation (ARCC) is the cheapest at 10.
3x versus Saratoga Investment Corp 6. 00% at 12. 4x. On forward P/E, Ares Capital Corporation is actually cheaper at 10. 0x.
03Which is the better long-term investment — SAT or ARCC?
Over the past 5 years, Ares Capital Corporation (ARCC) delivered a total return of +49.
5%, compared to +25. 3% for Saratoga Investment Corp 6. 00% (SAT). Over 10 years, the gap is even starker: ARCC returned +139. 7% versus SAT's +25. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — SAT or ARCC?
By beta (market sensitivity over 5 years), Saratoga Investment Corp 6.
00% (SAT) is the lower-risk stock at 0. 56β versus Ares Capital Corporation's 0. 77β — meaning ARCC is approximately 36% more volatile than SAT relative to the S&P 500. On balance sheet safety, Ares Capital Corporation (ARCC) carries a lower debt/equity ratio of 112% versus 199% for Saratoga Investment Corp 6. 00% — giving it more financial flexibility in a downturn.
05Which is growing faster — SAT or ARCC?
By revenue growth (latest reported year), Saratoga Investment Corp 6.
00% (SAT) is pulling ahead at 35. 4% versus 32. 9% for Ares Capital Corporation (ARCC). On earnings-per-share growth, the picture is similar: Saratoga Investment Corp 6. 00% grew EPS 184. 5% 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.
06Which has better profit margins — SAT or ARCC?
Ares Capital Corporation (ARCC) is the more profitable company, earning 41.
3% net margin versus 29. 8% for Saratoga Investment Corp 6. 00% — meaning it keeps 41. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ARCC leads at 69. 7% versus 33. 9% for SAT. 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.
07Is SAT or ARCC more undervalued right now?
On forward earnings alone, Ares Capital Corporation (ARCC) trades at 10.
0x forward P/E versus 10. 1x for Saratoga Investment Corp 6. 00% — 0. 1x cheaper on a one-year earnings basis.
08Which pays a better dividend — SAT or ARCC?
All stocks in this comparison pay dividends.
Saratoga Investment Corp 6. 00% (SAT) offers the highest yield at 11. 7%, versus 2. 0% for Ares Capital Corporation (ARCC).
09Is SAT or ARCC better for a retirement portfolio?
For long-horizon retirement investors, Saratoga Investment Corp 6.
00% (SAT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 56), 11. 7% yield). Both have compounded well over 10 years (SAT: +25. 3%, ARCC: +139. 7%), 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.
10What are the main differences between SAT and ARCC?
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.
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.
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Revenue Growth>
%
(SAT: 35.4% · ARCC: 32.9%)Net Margin>
%
(SAT: 29.8% · ARCC: 41.3%)P/E Ratio<
x
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