HCXY vs ARCC vs GBDC vs OBDC

For growth investors, Blue Owl Capital Corporation (OBDC) is the stronger pick with 52.

6% revenue growth year-over-year, versus 18. 3% for Hercules Capital, Inc. (HCXY). Blue Owl Capital Corporation (OBDC) offers the better valuation at 9. 2x trailing P/E (8. 3x 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, Blue Owl Capital Corporation (OBDC) is the cheapest at 9.

2x versus Hercules Capital, Inc. at 13. 4x. On forward P/E, Blue Owl Capital Corporation is actually cheaper at 8. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Golub Capital BDC, Inc. wins at 0. 30x versus Blue Owl Capital Corporation's 1. 89x — 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 +20. 8% for Hercules Capital, Inc. (HCXY). Over 10 years, the gap is even starker: ARCC returned +139. 2% versus OBDC's +41. 1%. 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), Hercules Capital, Inc.

(HCXY) is the lower-risk stock at 0. 49β versus Blue Owl Capital Corporation's 0. 84β — meaning OBDC is approximately 72% more volatile than HCXY relative to the S&P 500. On balance sheet safety, Hercules Capital, Inc. (HCXY) carries a lower debt/equity ratio of 104% versus 126% for Blue Owl Capital Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Blue Owl Capital Corporation (OBDC) is pulling ahead at 52.

6% versus 18. 3% for Hercules Capital, Inc. (HCXY). On earnings-per-share growth, the picture is similar: Hercules Capital, Inc. grew EPS 14. 9% 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.

Hercules Capital, Inc.

(HCXY) is the more profitable company, earning 69. 1% net margin versus 37. 4% for Blue Owl Capital Corporation — meaning it keeps 69. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HCXY leads at 87. 8% versus 69. 7% for ARCC. At the gross margin level — before operating expenses — HCXY leads at 97. 6%, 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, Golub Capital BDC, Inc. (GBDC) is the more undervalued stock at a PEG of 0. 30x versus Blue Owl Capital Corporation's 1. 89x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Blue Owl Capital Corporation (OBDC) trades at 8. 3x forward P/E versus 12. 7x for Hercules Capital, Inc. — 4. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for OBDC: 27. 1% to $14. 50.

All stocks in this comparison pay dividends.

Blue Owl Capital Corporation (OBDC) offers the highest yield at 13. 0%, versus 2. 0% for Ares Capital Corporation (ARCC).

For long-horizon retirement investors, Hercules Capital, Inc.

(HCXY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 49), 5. 9% yield). Both have compounded well over 10 years (HCXY: +52. 5%, OBDC: +41. 1%), 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.

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.