MFIC vs OBDC vs ARCC vs FSK

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

6% revenue growth year-over-year, versus 5. 5% for FS KKR Capital Corp. (FSK). 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 Blue Owl Capital Corporation (OBDC) a "Buy" — based on 13 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 FS KKR Capital Corp. at 278. 4x. On forward P/E, FS KKR Capital Corp. is actually cheaper at 6. 4x — notably different from the trailing picture, reflecting expected earnings growth. 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 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 +16. 3% for FS KKR Capital Corp. (FSK). Over 10 years, the gap is even starker: ARCC returned +139. 2% versus FSK's +11. 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), MidCap Financial Investment Corporation (MFIC) is the lower-risk stock at 0.

75β versus FS KKR Capital Corp. 's 0. 87β — meaning FSK is approximately 16% more volatile than MFIC relative to the S&P 500. On balance sheet safety, Ares Capital Corporation (ARCC) carries a lower debt/equity ratio of 112% versus 153% for MidCap Financial Investment 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 5. 5% for FS KKR Capital Corp. (FSK). On earnings-per-share growth, the picture is similar: Blue Owl Capital Corporation grew EPS -19. 0% year-over-year, compared to -98. 1% for FS KKR Capital Corp.. 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 0. 9% for FS KKR Capital Corp. — meaning it keeps 41. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: OBDC leads at 73. 2% versus 49. 5% for FSK. At the gross margin level — before operating expenses — MFIC leads at 83. 4%, 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 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, FS KKR Capital Corp. (FSK) trades at 6. 4x forward P/E versus 9. 9x for Ares Capital Corporation — 3. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FSK: 50. 8% to $16. 50.

All stocks in this comparison pay dividends.

FS KKR Capital Corp. (FSK) offers the highest yield at 25. 6%, 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%, FSK: +11. 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: MFIC is a small-cap high-growth stock; OBDC is a small-cap high-growth stock; ARCC is a mid-cap high-growth stock; FSK is a small-cap income-oriented 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.