GLAD
Gladstone Capital Corporation
Asset Management
Market Cap$434M
5Y Perf.+37.0%
Compare Stocks
2 / 10Try these comparisons:
Stock Comparison
GLAD 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.+29.9%
GLAD vs ARCC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | GLAD | ARCC |
|---|---|---|
| Industry | Asset Management | Asset Management |
| Market Cap | $434M | $13.76B |
| Revenue (TTM) | $145M | $3.15B |
| Net Income (TTM) | $28M | $1.15B |
| Gross Margin | 87.3% | 75.7% |
| Operating Margin | 55.5% | 69.7% |
| Forward P/E | 9.9x | 10.0x |
| Total Debt | $398M | $15.99B |
| Cash & Equiv. | $32M | $924M |
GLAD vs ARCC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
GLAD
ARCC
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Gladstone Capital C… (GLAD) | 100 | 137.0 | +37.0% |
| Ares Capital Corpor… (ARCC) | 100 | 129.9 | +29.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: GLAD vs ARCC
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ARCC leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. Gladstone Capital Corporation is the stronger pick specifically for valuation and capital efficiency and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
GLAD
Gladstone Capital Corporation
The Banking Pick
GLAD is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 4 yrs, beta 0.73, yield 12.7%
- 160.4% 10Y total return vs ARCC's 139.7%
- Lower volatility, beta 0.73, Low D/E 82.5%, current ratio 9.90x
Best for: income & stability and long-term compounding
ARCC
Ares Capital Corporation
The Banking Pick
ARCC carries the broadest edge in this set and is the clearest fit for growth exposure.
- Rev growth 32.9%, EPS growth -23.8%
- 32.9% NII/revenue growth vs GLAD's 20.4%
- Efficiency ratio 0.1% vs GLAD's 0.3% (lower = leaner)
Best for: growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | ARCC | 32.9% NII/revenue growth vs GLAD's 20.4% |
| Value | GLAD | Lower P/E (9.9x vs 10.0x) |
| Quality / Margins | ARCC | Efficiency ratio 0.1% vs GLAD's 0.3% (lower = leaner) |
| Stability / Safety | GLAD | Beta 0.73 vs ARCC's 0.77, lower leverage |
| Dividends | GLAD | 12.7% yield, 4-year raise streak, vs ARCC's 2.0% |
| Momentum (1Y) | ARCC | +1.9% vs GLAD's -16.1% |
| Efficiency (ROA) | ARCC | Efficiency ratio 0.1% vs GLAD's 0.3% |
GLAD vs ARCC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLGLADLAGGINGARCC
ARCCAres Capital Corporat…
1leads
GLADGladstone Capital Cor…
3leads
6 Total Categories
CATEGORYLEADERvs ARCCMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ARCC4/5
Valuation MetricsMultiples, price ratios, and targets
GLAD6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
GLAD6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
Tied
—
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
GLAD2/2
Income & Cash Flow (Last 12 Months)
ARCC leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
ARCC is the larger business by revenue, generating $3.1B annually — 21.7x GLAD's $145M. Profitability is closely matched — net margins range from 41.3% (ARCC) to 40.1% (GLAD).
| Metric | GLADGladstone Capital… | ARCCAres Capital Corp… |
|---|---|---|
| RevenueTrailing 12 months | $145M | $3.1B |
| EBITDAEarnings before interest/tax | $28M | $2.0B |
| Net IncomeAfter-tax profit | $28M | $1.1B |
| Free Cash FlowCash after capex | -$70M | $1.1B |
| Gross MarginGross profit ÷ Revenue | +87.3% | +75.7% |
| Operating MarginEBIT ÷ Revenue | +55.5% | +69.7% |
| Net MarginNet income ÷ Revenue | +40.1% | +41.3% |
| FCF MarginFCF ÷ Revenue | +30.1% | +36.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -100.0% | -63.9% |
ARCC leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
GLAD leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 7.5x trailing earnings, GLAD trades at a 27% valuation discount to ARCC's 10.3x P/E. On an enterprise value basis, GLAD's 6.5x EV/EBITDA is more attractive than ARCC's 13.2x.
| Metric | GLADGladstone Capital… | ARCCAres Capital Corp… |
|---|---|---|
| Market CapShares × price | $434M | $13.8B |
| Enterprise ValueMkt cap + debt − cash | $799M | $28.8B |
| Trailing P/EPrice ÷ TTM EPS | 7.53x | 10.30x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.91x | 10.02x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.00x |
| EV / EBITDAEnterprise value multiple | 6.54x | 13.16x |
| Price / SalesMarket cap ÷ Revenue | 3.00x | 4.37x |
| Price / BookPrice ÷ Book value/share | 0.90x | 0.94x |
| Price / FCFMarket cap ÷ FCF | 9.95x | 12.05x |
GLAD leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
GLAD leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
ARCC delivers a 8.1% return on equity — every $100 of shareholder capital generates $8 in annual profit, vs $6 for GLAD. GLAD carries lower financial leverage with a 0.83x debt-to-equity ratio, signaling a more conservative balance sheet compared to ARCC's 1.12x. On the Piotroski fundamental quality scale (0–9), GLAD scores 5/9 vs ARCC's 4/9, reflecting solid financial health.
| Metric | GLADGladstone Capital… | ARCCAres Capital Corp… |
|---|---|---|
| ROE (TTM)Return on equity | +5.6% | +8.1% |
| ROA (TTM)Return on assets | +3.2% | +3.8% |
| ROICReturn on invested capital | +7.2% | +5.7% |
| ROCEReturn on capital employed | +9.4% | +7.5% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.83x | 1.12x |
| Net DebtTotal debt minus cash | $365M | $15.1B |
| Cash & Equiv.Liquid assets | $32M | $924M |
| Total DebtShort + long-term debt | $398M | $16.0B |
| Interest CoverageEBIT ÷ Interest expense | 1.27x | 2.98x |
GLAD leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
Evenly matched — GLAD and ARCC each lead in 3 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 $13,142 for GLAD. Over the past 12 months, ARCC leads with a +1.9% total return vs GLAD's -16.1%. The 3-year compound annual growth rate (CAGR) favors GLAD at 10.9% vs ARCC's 10.6% — a key indicator of consistent wealth creation.
| Metric | GLADGladstone Capital… | ARCCAres Capital Corp… |
|---|---|---|
| YTD ReturnYear-to-date | -4.3% | -3.9% |
| 1-Year ReturnPast 12 months | -16.1% | +1.9% |
| 3-Year ReturnCumulative with dividends | +36.2% | +35.3% |
| 5-Year ReturnCumulative with dividends | +31.4% | +49.5% |
| 10-Year ReturnCumulative with dividends | +160.4% | +139.7% |
| CAGR (3Y)Annualised 3-year return | +10.9% | +10.6% |
Evenly matched — GLAD and ARCC each lead in 3 of 6 comparable metrics.
Risk & Volatility
Evenly matched — GLAD and ARCC each lead in 1 of 2 comparable metrics.
Risk & Volatility
GLAD is the less volatile stock with a 0.73 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. ARCC currently trades 81.8% from its 52-week high vs GLAD's 65.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | GLADGladstone Capital… | ARCCAres Capital Corp… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.73x | 0.77x |
| 52-Week HighHighest price in past year | $29.50 | $23.42 |
| 52-Week LowLowest price in past year | $16.54 | $17.40 |
| % of 52W HighCurrent price vs 52-week peak | +65.1% | +81.8% |
| RSI (14)Momentum oscillator 0–100 | 62.3 | 60.6 |
| Avg Volume (50D)Average daily shares traded | 222K | 7.5M |
Evenly matched — GLAD and ARCC each lead in 1 of 2 comparable metrics.
Analyst Outlook
GLAD leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates GLAD as "Hold" and ARCC as "Buy". Consensus price targets imply 14.2% upside for ARCC (target: $22) vs 12.8% for GLAD (target: $22). For income investors, GLAD offers the higher dividend yield at 12.74% vs ARCC's 2.00%.
| Metric | GLADGladstone Capital… | ARCCAres Capital Corp… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $21.67 | $21.88 |
| # AnalystsCovering analysts | 14 | 32 |
| Dividend YieldAnnual dividend ÷ price | +12.7% | +2.0% |
| Dividend StreakConsecutive years of raises | 4 | 0 |
| Dividend / ShareAnnual DPS | $2.45 | $0.38 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
GLAD leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
GLAD leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). ARCC leads in 1 (Income & Cash Flow). 2 tied.
Best OverallGladstone Capital Corporati… (GLAD)Leads 3 of 6 categories
Loading custom metrics...
GLAD vs ARCC: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is GLAD or ARCC a better buy right now?
For growth investors, Ares Capital Corporation (ARCC) is the stronger pick with 32.
9% revenue growth year-over-year, versus 20. 4% for Gladstone Capital Corporation (GLAD). Gladstone Capital Corporation (GLAD) offers the better valuation at 7. 5x trailing P/E (9. 9x 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 — GLAD or ARCC?
On trailing P/E, Gladstone Capital Corporation (GLAD) is the cheapest at 7.
5x versus Ares Capital Corporation at 10. 3x. On forward P/E, Gladstone Capital Corporation is actually cheaper at 9. 9x.
03Which is the better long-term investment — GLAD or ARCC?
Over the past 5 years, Ares Capital Corporation (ARCC) delivered a total return of +49.
5%, compared to +31. 4% for Gladstone Capital Corporation (GLAD). Over 10 years, the gap is even starker: GLAD returned +160. 4% versus ARCC's +139. 7%. 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 — GLAD or ARCC?
By beta (market sensitivity over 5 years), Gladstone Capital Corporation (GLAD) is the lower-risk stock at 0.
73β versus Ares Capital Corporation's 0. 77β — meaning ARCC is approximately 5% more volatile than GLAD relative to the S&P 500. On balance sheet safety, Gladstone Capital Corporation (GLAD) carries a lower debt/equity ratio of 83% versus 112% for Ares Capital Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — GLAD or ARCC?
By revenue growth (latest reported year), Ares Capital Corporation (ARCC) is pulling ahead at 32.
9% versus 20. 4% for Gladstone Capital Corporation (GLAD). On earnings-per-share growth, the picture is similar: Ares Capital Corporation grew EPS -23. 8% year-over-year, compared to -41. 2% for Gladstone 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 — GLAD or ARCC?
Ares Capital Corporation (ARCC) is the more profitable company, earning 41.
3% net margin versus 40. 1% for Gladstone Capital Corporation — 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 55. 5% for GLAD. At the gross margin level — before operating expenses — GLAD leads at 87. 3%, 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 GLAD or ARCC more undervalued right now?
On forward earnings alone, Gladstone Capital Corporation (GLAD) trades at 9.
9x forward P/E versus 10. 0x for Ares Capital Corporation — 0. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARCC: 14. 2% to $21. 88.
08Which pays a better dividend — GLAD or ARCC?
All stocks in this comparison pay dividends.
Gladstone Capital Corporation (GLAD) offers the highest yield at 12. 7%, versus 2. 0% for Ares Capital Corporation (ARCC).
09Is GLAD or ARCC better for a retirement portfolio?
For long-horizon retirement investors, Gladstone Capital Corporation (GLAD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
73), 12. 7% yield, +160. 4% 10Y return). Both have compounded well over 10 years (GLAD: +160. 4%, 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 GLAD 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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
Revenue Growth>
%
(GLAD: 20.4% · ARCC: 32.9%)Net Margin>
%
(GLAD: 40.1% · ARCC: 41.3%)P/E Ratio<
x
(GLAD: 7.5x · ARCC: 10.3x)You Might Also Compare
Based on how these companies actually compete and overlap — not just which sector they're filed under.