PNNT
PennantPark Investment Corporation
Asset Management
Market Cap$316M
5Y Perf.+47.6%
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Stock Comparison
PNNT 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%
PNNT vs ARCC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | PNNT | ARCC |
|---|---|---|
| Industry | Asset Management | Asset Management |
| Market Cap | $316M | $13.76B |
| Revenue (TTM) | $83M | $3.15B |
| Net Income (TTM) | $26M | $1.15B |
| Gross Margin | 50.3% | 75.7% |
| Operating Margin | 42.5% | 69.7% |
| Forward P/E | 8.7x | 10.0x |
| Total Debt | $739M | $15.99B |
| Cash & Equiv. | $52M | $924M |
PNNT vs ARCC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
PNNT
ARCC
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| PennantPark Investm… (PNNT) | 100 | 147.6 | +47.6% |
| Ares Capital Corpor… (ARCC) | 100 | 129.9 | +29.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: PNNT vs ARCC
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ARCC leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. PennantPark Investment Corporation is the stronger pick specifically for valuation and capital efficiency and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
PNNT
PennantPark Investment Corporation
The Banking Pick
PNNT is the clearest fit if your priority is income & stability and bank quality.
- Dividend streak 4 yrs, beta 0.84, yield 21.5%
- NIM 4.2% vs ARCC's 3.6%
- Lower P/E (8.7x vs 10.0x)
Best for: income & stability and bank quality
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 PNNT's 102.9%
- Lower volatility, beta 0.77, current ratio 1.71x
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | ARCC | 32.9% NII/revenue growth vs PNNT's -19.9% |
| Value | PNNT | Lower P/E (8.7x vs 10.0x) |
| Quality / Margins | ARCC | Efficiency ratio 0.1% vs PNNT's 0.1% (lower = leaner) |
| Stability / Safety | ARCC | Beta 0.77 vs PNNT's 0.84, lower leverage |
| Dividends | PNNT | 21.5% yield, 4-year raise streak, vs ARCC's 2.0% |
| Momentum (1Y) | ARCC | +1.9% vs PNNT's -9.8% |
| Efficiency (ROA) | ARCC | Efficiency ratio 0.1% vs PNNT's 0.1% |
PNNT vs ARCC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLARCCLAGGINGPNNT
PNNTPennantPark Investmen…
2leads
ARCCAres Capital Corporat…
4leads
6 Total Categories
CATEGORYLEADERvs PNNTMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ARCC3/5
Valuation MetricsMultiples, price ratios, and targets
PNNT5/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ARCC6/8
Total Returns1Y, 3Y, 5Y total returns with dividends
ARCC4/6
Risk & VolatilityBeta, volatility, and downside exposure
ARCC2/2
Analyst OutlookRatings, price targets, and dividends
PNNT2/2
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 — 37.9x PNNT's $83M. Profitability is closely matched — net margins range from 41.3% (ARCC) to 39.4% (PNNT).
| Metric | PNNTPennantPark Inves… | ARCCAres Capital Corp… |
|---|---|---|
| RevenueTrailing 12 months | $83M | $3.1B |
| EBITDAEarnings before interest/tax | $26M | $2.0B |
| Net IncomeAfter-tax profit | $26M | $1.1B |
| Free Cash FlowCash after capex | $272M | $1.1B |
| Gross MarginGross profit ÷ Revenue | +50.3% | +75.7% |
| Operating MarginEBIT ÷ Revenue | +42.5% | +69.7% |
| Net MarginNet income ÷ Revenue | +39.4% | +41.3% |
| FCF MarginFCF ÷ Revenue | +79.6% | +36.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -44.0% | -63.9% |
ARCC leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
PNNT leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 9.7x trailing earnings, PNNT trades at a 6% valuation discount to ARCC's 10.3x P/E. On an enterprise value basis, ARCC's 13.2x EV/EBITDA is more attractive than PNNT's 28.4x.
| Metric | PNNTPennantPark Inves… | ARCCAres Capital Corp… |
|---|---|---|
| Market CapShares × price | $316M | $13.8B |
| Enterprise ValueMkt cap + debt − cash | $1.0B | $28.8B |
| Trailing P/EPrice ÷ TTM EPS | 9.68x | 10.30x |
| Forward P/EPrice ÷ next-FY EPS est. | 8.72x | 10.02x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.00x |
| EV / EBITDAEnterprise value multiple | 28.43x | 13.16x |
| Price / SalesMarket cap ÷ Revenue | 3.80x | 4.37x |
| Price / BookPrice ÷ Book value/share | 0.68x | 0.94x |
| Price / FCFMarket cap ÷ FCF | 4.78x | 12.05x |
PNNT leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
ARCC leads this category, winning 6 of 8 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 PNNT. ARCC carries lower financial leverage with a 1.12x debt-to-equity ratio, signaling a more conservative balance sheet compared to PNNT's 1.59x.
| Metric | PNNTPennantPark Inves… | ARCCAres Capital Corp… |
|---|---|---|
| ROE (TTM)Return on equity | +5.4% | +8.1% |
| ROA (TTM)Return on assets | +2.0% | +3.8% |
| ROICReturn on invested capital | +2.1% | +5.7% |
| ROCEReturn on capital employed | +2.9% | +7.5% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 4 |
| Debt / EquityFinancial leverage | 1.59x | 1.12x |
| Net DebtTotal debt minus cash | $687M | $15.1B |
| Cash & Equiv.Liquid assets | $52M | $924M |
| Total DebtShort + long-term debt | $739M | $16.0B |
| Interest CoverageEBIT ÷ Interest expense | 0.65x | 2.98x |
ARCC leads this category, winning 6 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
ARCC leads this category, winning 4 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 $13,127 for PNNT. Over the past 12 months, ARCC leads with a +1.9% total return vs PNNT's -9.8%. The 3-year compound annual growth rate (CAGR) favors PNNT at 15.7% vs ARCC's 10.6% — a key indicator of consistent wealth creation.
| Metric | PNNTPennantPark Inves… | ARCCAres Capital Corp… |
|---|---|---|
| YTD ReturnYear-to-date | -14.7% | -3.9% |
| 1-Year ReturnPast 12 months | -9.8% | +1.9% |
| 3-Year ReturnCumulative with dividends | +54.9% | +35.3% |
| 5-Year ReturnCumulative with dividends | +31.3% | +49.5% |
| 10-Year ReturnCumulative with dividends | +102.9% | +139.7% |
| CAGR (3Y)Annualised 3-year return | +15.7% | +10.6% |
ARCC leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
ARCC leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
ARCC is the less volatile stock with a 0.77 beta — it tends to amplify market swings less than PNNT's 0.84 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 PNNT's 64.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | PNNTPennantPark Inves… | ARCCAres Capital Corp… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.84x | 0.77x |
| 52-Week HighHighest price in past year | $7.53 | $23.42 |
| 52-Week LowLowest price in past year | $4.29 | $17.40 |
| % of 52W HighCurrent price vs 52-week peak | +64.3% | +81.8% |
| RSI (14)Momentum oscillator 0–100 | 60.9 | 60.6 |
| Avg Volume (50D)Average daily shares traded | 699K | 7.5M |
ARCC leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
PNNT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates PNNT as "Hold" and ARCC as "Buy". Consensus price targets imply 27.5% upside for PNNT (target: $6) vs 14.2% for ARCC (target: $22). For income investors, PNNT offers the higher dividend yield at 21.49% vs ARCC's 2.00%.
| Metric | PNNTPennantPark Inves… | ARCCAres Capital Corp… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $6.17 | $21.88 |
| # AnalystsCovering analysts | 15 | 32 |
| Dividend YieldAnnual dividend ÷ price | +21.5% | +2.0% |
| Dividend StreakConsecutive years of raises | 4 | 0 |
| Dividend / ShareAnnual DPS | $1.04 | $0.38 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
PNNT leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
ARCC leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). PNNT leads in 2 (Valuation Metrics, Analyst Outlook).
Best OverallAres Capital Corporation (ARCC)Leads 4 of 6 categories
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PNNT vs ARCC: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is PNNT 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 -19. 9% for PennantPark Investment Corporation (PNNT). PennantPark Investment Corporation (PNNT) offers the better valuation at 9. 7x trailing P/E (8. 7x 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 — PNNT or ARCC?
On trailing P/E, PennantPark Investment Corporation (PNNT) is the cheapest at 9.
7x versus Ares Capital Corporation at 10. 3x. On forward P/E, PennantPark Investment Corporation is actually cheaper at 8. 7x.
03Which is the better long-term investment — PNNT or ARCC?
Over the past 5 years, Ares Capital Corporation (ARCC) delivered a total return of +49.
5%, compared to +31. 3% for PennantPark Investment Corporation (PNNT). Over 10 years, the gap is even starker: ARCC returned +139. 7% versus PNNT's +102. 9%. 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 — PNNT or ARCC?
By beta (market sensitivity over 5 years), Ares Capital Corporation (ARCC) is the lower-risk stock at 0.
77β versus PennantPark Investment Corporation's 0. 84β — meaning PNNT is approximately 9% 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 159% for PennantPark Investment Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — PNNT or ARCC?
By revenue growth (latest reported year), Ares Capital Corporation (ARCC) is pulling ahead at 32.
9% versus -19. 9% for PennantPark Investment Corporation (PNNT). On earnings-per-share growth, the picture is similar: Ares Capital Corporation grew EPS -23. 8% year-over-year, compared to -33. 3% for PennantPark Investment 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 — PNNT or ARCC?
Ares Capital Corporation (ARCC) is the more profitable company, earning 41.
3% net margin versus 39. 4% for PennantPark Investment 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 42. 5% for PNNT. 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.
07Is PNNT or ARCC more undervalued right now?
On forward earnings alone, PennantPark Investment Corporation (PNNT) trades at 8.
7x forward P/E versus 10. 0x for Ares Capital Corporation — 1. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PNNT: 27. 5% to $6. 17.
08Which pays a better dividend — PNNT or ARCC?
All stocks in this comparison pay dividends.
PennantPark Investment Corporation (PNNT) offers the highest yield at 21. 5%, versus 2. 0% for Ares Capital Corporation (ARCC).
09Is PNNT or ARCC better for a retirement portfolio?
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%, PNNT: +102. 9%), 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 PNNT 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: PNNT is a small-cap deep-value 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>
%
(PNNT: -19.9% · ARCC: 32.9%)Net Margin>
%
(PNNT: 39.4% · ARCC: 41.3%)P/E Ratio<
x
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