NMFC
New Mountain Finance Corporation
Asset Management
Market Cap$806M
5Y Perf.-10.2%
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Stock Comparison
NMFC 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%
NMFC vs ARCC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | NMFC | ARCC |
|---|---|---|
| Industry | Asset Management | Asset Management |
| Market Cap | $806M | $13.76B |
| Revenue (TTM) | $370M | $3.15B |
| Net Income (TTM) | $-58M | $1.15B |
| Gross Margin | 83.6% | 75.7% |
| Operating Margin | 38.0% | 69.7% |
| Forward P/E | 7.7x | 10.0x |
| Total Debt | $1.67B | $15.99B |
| Cash & Equiv. | $81M | $924M |
NMFC vs ARCC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
NMFC
ARCC
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| New Mountain Financ… (NMFC) | 100 | 89.8 | -10.2% |
| Ares Capital Corpor… (ARCC) | 100 | 129.9 | +29.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: NMFC 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. New Mountain Finance 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.
NMFC
New Mountain Finance Corporation
The Banking Pick
NMFC is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 1 yrs, beta 0.59, yield 13.1%
- Lower volatility, beta 0.59, current ratio 0.57x
- Beta 0.59, yield 13.1%, current ratio 0.57x
Best for: income & stability and sleep-well-at-night
ARCC
Ares Capital Corporation
The Banking Pick
ARCC carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 32.9%, EPS growth -23.8%
- 139.7% 10Y total return vs NMFC's 76.4%
- 32.9% NII/revenue growth vs NMFC's 12.3%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | ARCC | 32.9% NII/revenue growth vs NMFC's 12.3% |
| Value | NMFC | Lower P/E (7.7x vs 10.0x) |
| Quality / Margins | ARCC | Efficiency ratio 0.1% vs NMFC's 0.5% (lower = leaner) |
| Stability / Safety | NMFC | Beta 0.59 vs ARCC's 0.77 |
| Dividends | NMFC | 13.1% yield, 1-year raise streak, vs ARCC's 2.0% |
| Momentum (1Y) | ARCC | +1.9% vs NMFC's -3.4% |
| Efficiency (ROA) | ARCC | Efficiency ratio 0.1% vs NMFC's 0.5% |
NMFC vs ARCC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLARCCLAGGINGNMFC
NMFCNew Mountain Finance …
2leads
ARCCAres Capital Corporat…
3leads
6 Total Categories
CATEGORYLEADERvs NMFCMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ARCC3/5
Valuation MetricsMultiples, price ratios, and targets
NMFC5/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ARCC6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
ARCC6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
NMFC2/2
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 — 8.5x NMFC's $370M. ARCC is the more profitable business, keeping 41.3% of every revenue dollar as net income compared to NMFC's 4.5%.
| Metric | NMFCNew Mountain Fina… | ARCCAres Capital Corp… |
|---|---|---|
| RevenueTrailing 12 months | $370M | $3.1B |
| EBITDAEarnings before interest/tax | $83M | $2.0B |
| Net IncomeAfter-tax profit | -$58M | $1.1B |
| Free Cash FlowCash after capex | $676M | $1.1B |
| Gross MarginGross profit ÷ Revenue | +83.6% | +75.7% |
| Operating MarginEBIT ÷ Revenue | +38.0% | +69.7% |
| Net MarginNet income ÷ Revenue | +4.5% | +41.3% |
| FCF MarginFCF ÷ Revenue | +102.4% | +36.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -3.3% | -63.9% |
ARCC leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
NMFC leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 10.3x trailing earnings, ARCC trades at a 83% valuation discount to NMFC's 60.9x P/E. On an enterprise value basis, NMFC's 7.9x EV/EBITDA is more attractive than ARCC's 13.2x.
| Metric | NMFCNew Mountain Fina… | ARCCAres Capital Corp… |
|---|---|---|
| Market CapShares × price | $806M | $13.8B |
| Enterprise ValueMkt cap + debt − cash | $2.4B | $28.8B |
| Trailing P/EPrice ÷ TTM EPS | 60.93x | 10.30x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.67x | 10.02x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.00x |
| EV / EBITDAEnterprise value multiple | 7.90x | 13.16x |
| Price / SalesMarket cap ÷ Revenue | 2.18x | 4.37x |
| Price / BookPrice ÷ Book value/share | 0.87x | 0.94x |
| Price / FCFMarket cap ÷ FCF | 2.13x | 12.05x |
NMFC leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
ARCC 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 $-5 for NMFC. ARCC carries lower financial leverage with a 1.12x debt-to-equity ratio, signaling a more conservative balance sheet compared to NMFC's 1.41x. On the Piotroski fundamental quality scale (0–9), NMFC scores 6/9 vs ARCC's 4/9, reflecting solid financial health.
| Metric | NMFCNew Mountain Fina… | ARCCAres Capital Corp… |
|---|---|---|
| ROE (TTM)Return on equity | -4.8% | +8.1% |
| ROA (TTM)Return on assets | -2.0% | +3.8% |
| ROICReturn on invested capital | +3.5% | +5.7% |
| ROCEReturn on capital employed | +4.8% | +7.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 1.41x | 1.12x |
| Net DebtTotal debt minus cash | $1.6B | $15.1B |
| Cash & Equiv.Liquid assets | $81M | $924M |
| Total DebtShort + long-term debt | $1.7B | $16.0B |
| Interest CoverageEBIT ÷ Interest expense | 0.00x | 2.98x |
ARCC leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
ARCC leads this category, winning 6 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 $11,637 for NMFC. Over the past 12 months, ARCC leads with a +1.9% total return vs NMFC's -3.4%. The 3-year compound annual growth rate (CAGR) favors ARCC at 10.6% vs NMFC's 2.9% — a key indicator of consistent wealth creation.
| Metric | NMFCNew Mountain Fina… | ARCCAres Capital Corp… |
|---|---|---|
| YTD ReturnYear-to-date | -4.0% | -3.9% |
| 1-Year ReturnPast 12 months | -3.4% | +1.9% |
| 3-Year ReturnCumulative with dividends | +8.8% | +35.3% |
| 5-Year ReturnCumulative with dividends | +16.4% | +49.5% |
| 10-Year ReturnCumulative with dividends | +76.4% | +139.7% |
| CAGR (3Y)Annualised 3-year return | +2.9% | +10.6% |
ARCC leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — NMFC and ARCC each lead in 1 of 2 comparable metrics.
Risk & Volatility
NMFC is the less volatile stock with a 0.59 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 NMFC's 77.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NMFCNew Mountain Fina… | ARCCAres Capital Corp… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.59x | 0.77x |
| 52-Week HighHighest price in past year | $11.04 | $23.42 |
| 52-Week LowLowest price in past year | $7.47 | $17.40 |
| % of 52W HighCurrent price vs 52-week peak | +77.3% | +81.8% |
| RSI (14)Momentum oscillator 0–100 | 56.1 | 60.6 |
| Avg Volume (50D)Average daily shares traded | 1.2M | 7.5M |
Evenly matched — NMFC and ARCC each lead in 1 of 2 comparable metrics.
Analyst Outlook
NMFC leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates NMFC as "Hold" and ARCC as "Buy". Consensus price targets imply 23.1% upside for NMFC (target: $11) vs 14.2% for ARCC (target: $22). For income investors, NMFC offers the higher dividend yield at 13.14% vs ARCC's 2.00%.
| Metric | NMFCNew Mountain Fina… | ARCCAres Capital Corp… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $10.50 | $21.88 |
| # AnalystsCovering analysts | 12 | 32 |
| Dividend YieldAnnual dividend ÷ price | +13.1% | +2.0% |
| Dividend StreakConsecutive years of raises | 1 | 0 |
| Dividend / ShareAnnual DPS | $1.12 | $0.38 |
| Buyback YieldShare repurchases ÷ mkt cap | +6.4% | 0.0% |
NMFC leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
ARCC leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). NMFC leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Best OverallAres Capital Corporation (ARCC)Leads 3 of 6 categories
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NMFC vs ARCC: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is NMFC 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 12. 3% for New Mountain Finance Corporation (NMFC). 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 — NMFC or ARCC?
On trailing P/E, Ares Capital Corporation (ARCC) is the cheapest at 10.
3x versus New Mountain Finance Corporation at 60. 9x. On forward P/E, New Mountain Finance Corporation is actually cheaper at 7. 7x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — NMFC or ARCC?
Over the past 5 years, Ares Capital Corporation (ARCC) delivered a total return of +49.
5%, compared to +16. 4% for New Mountain Finance Corporation (NMFC). Over 10 years, the gap is even starker: ARCC returned +139. 7% versus NMFC's +76. 4%. 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 — NMFC or ARCC?
By beta (market sensitivity over 5 years), New Mountain Finance Corporation (NMFC) is the lower-risk stock at 0.
59β versus Ares Capital Corporation's 0. 77β — meaning ARCC is approximately 30% more volatile than NMFC relative to the S&P 500. On balance sheet safety, Ares Capital Corporation (ARCC) carries a lower debt/equity ratio of 112% versus 141% for New Mountain Finance Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — NMFC or ARCC?
By revenue growth (latest reported year), Ares Capital Corporation (ARCC) is pulling ahead at 32.
9% versus 12. 3% for New Mountain Finance Corporation (NMFC). On earnings-per-share growth, the picture is similar: Ares Capital Corporation grew EPS -23. 8% year-over-year, compared to -86. 4% for New Mountain Finance 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 — NMFC or ARCC?
Ares Capital Corporation (ARCC) is the more profitable company, earning 41.
3% net margin versus 4. 5% for New Mountain Finance 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 38. 0% for NMFC. At the gross margin level — before operating expenses — NMFC leads at 83. 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.
07Is NMFC or ARCC more undervalued right now?
On forward earnings alone, New Mountain Finance Corporation (NMFC) trades at 7.
7x forward P/E versus 10. 0x for Ares Capital Corporation — 2. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NMFC: 23. 1% to $10. 50.
08Which pays a better dividend — NMFC or ARCC?
All stocks in this comparison pay dividends.
New Mountain Finance Corporation (NMFC) offers the highest yield at 13. 1%, versus 2. 0% for Ares Capital Corporation (ARCC).
09Is NMFC or ARCC better for a retirement portfolio?
For long-horizon retirement investors, New Mountain Finance Corporation (NMFC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
59), 13. 1% yield). Both have compounded well over 10 years (NMFC: +76. 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 NMFC 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.
In terms of investment character: NMFC is a small-cap income-oriented 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.
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Revenue Growth>
%
(NMFC: 12.3% · ARCC: 32.9%)Net Margin>
%
(NMFC: 4.5% · ARCC: 41.3%)P/E Ratio<
x
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