OBDC vs ARCC

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

6% revenue growth year-over-year, versus 32. 9% for Ares Capital Corporation (ARCC). Blue Owl Capital Corporation (OBDC) offers the better valuation at 9. 5x trailing P/E (8. 6x 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.

5x versus Ares Capital Corporation at 10. 3x. On forward P/E, Blue Owl Capital Corporation is actually cheaper at 8. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Ares Capital Corporation wins at 0. 97x versus Blue Owl Capital Corporation's 1. 95x — 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 +49.

5%, compared to +36. 4% for Blue Owl Capital Corporation (OBDC). Over 10 years, the gap is even starker: ARCC returned +139. 7% versus OBDC's +43. 4%. 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), Ares Capital Corporation (ARCC) is the lower-risk stock at 0.

77β versus Blue Owl Capital Corporation's 0. 84β — meaning OBDC is approximately 8% more volatile than ARCC relative to the S&P 500. On balance sheet safety, Ares Capital Corporation (ARCC) carries a lower debt/equity ratio of 112% 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 32. 9% for Ares Capital Corporation (ARCC). On earnings-per-share growth, the picture is similar: Blue Owl Capital Corporation grew EPS -19. 0% 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.

Ares Capital Corporation (ARCC) is the more profitable company, earning 41.

3% net margin versus 37. 4% for Blue Owl Capital Corporation — 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 69. 7% for ARCC. At the gross margin level — before operating expenses — ARCC leads at 75. 7%, 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. 97x versus Blue Owl Capital Corporation's 1. 95x. 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. 6x forward P/E versus 10. 0x for Ares Capital Corporation — 1. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for OBDC: 23. 3% to $14. 50.

All stocks in this comparison pay dividends.

Blue Owl Capital Corporation (OBDC) offers the highest yield at 12. 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. 7% 10Y return). Both have compounded well over 10 years (ARCC: +139. 7%, OBDC: +43. 4%), 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.