ECC vs ARCC

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

9% revenue growth year-over-year, versus -14. 9% for Eagle Point Credit Company Inc. (ECC). Eagle Point Credit Company Inc. (ECC) offers the better valuation at 5. 0x trailing P/E (4. 7x forward), making it the more compelling value choice. Analysts rate Eagle Point Credit Company Inc. (ECC) a "Buy" — based on 11 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, Eagle Point Credit Company Inc.

(ECC) is the cheapest at 5. 0x versus Ares Capital Corporation at 10. 2x. On forward P/E, Eagle Point Credit Company Inc. is actually cheaper at 4. 7x.

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

0%, compared to +7. 5% for Eagle Point Credit Company Inc. (ECC). Over 10 years, the gap is even starker: ARCC returned +139. 2% versus ECC's +34. 8%. 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), Eagle Point Credit Company Inc.

(ECC) is the lower-risk stock at 0. 68β versus Ares Capital Corporation's 0. 77β — meaning ARCC is approximately 13% more volatile than ECC relative to the S&P 500. On balance sheet safety, Eagle Point Credit Company Inc. (ECC) carries a lower debt/equity ratio of 29% 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 -14. 9% for Eagle Point Credit Company Inc. (ECC). On earnings-per-share growth, the picture is similar: Ares Capital Corporation grew EPS -23. 8% year-over-year, compared to -50. 6% for Eagle Point Credit Company Inc.. 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.

Eagle Point Credit Company Inc.

(ECC) is the more profitable company, earning 69. 3% net margin versus 41. 3% for Ares Capital Corporation — meaning it keeps 69. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ECC leads at 73. 7% versus 69. 7% for ARCC. At the gross margin level — before operating expenses — ECC leads at 84. 2%, 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.

On forward earnings alone, Eagle Point Credit Company Inc.

(ECC) trades at 4. 7x forward P/E versus 9. 9x for Ares Capital Corporation — 5. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARCC: 15. 4% to $21. 88.

All stocks in this comparison pay dividends.

Eagle Point Credit Company Inc. (ECC) offers the highest yield at 41. 0%, versus 2. 0% for Ares Capital Corporation (ARCC).

For long-horizon retirement investors, Eagle Point Credit Company Inc.

(ECC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 68), 41. 0% yield). Both have compounded well over 10 years (ECC: +34. 8%, ARCC: +139. 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: ECC 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.