RWAY
Runway Growth Finance Corp.
Financial - Credit Services
Market Cap$247M
5Y Perf.-47.3%
Compare Stocks
2 / 10Try these comparisons:
Stock Comparison
RWAY vs ARCC
Revenue, margins, valuation, and 5-year total return — side by side.
ARCC
Ares Capital Corporation
Asset Management
Market Cap$13.61B
5Y Perf.-11.6%
RWAY vs ARCC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | RWAY | ARCC |
|---|---|---|
| Industry | Financial - Credit Services | Asset Management |
| Market Cap | $247M | $13.61B |
| Revenue (TTM) | $140M | $3.15B |
| Net Income (TTM) | $32M | $1.15B |
| Gross Margin | 78.5% | 75.7% |
| Operating Margin | 54.7% | 69.7% |
| Forward P/E | 5.0x | 9.9x |
| Total Debt | $450M | $15.99B |
| Cash & Equiv. | $18M | $924M |
RWAY vs ARCC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
RWAY
ARCC
| Stock | Oct 21 | May 26 | Return |
|---|---|---|---|
| Runway Growth Finan… (RWAY) | 100 | 52.7 | -47.3% |
| Ares Capital Corpor… (ARCC) | 100 | 88.4 | -11.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RWAY 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. Runway Growth Finance Corp. 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.
RWAY
Runway Growth Finance Corp.
The Banking Pick
RWAY is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 0 yrs, beta 0.72, yield 20.5%
- Lower volatility, beta 0.72, Low D/E 92.8%
- Beta 0.72, yield 20.5%
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%
- 139.2% 10Y total return vs RWAY's 6.0%
- 32.9% NII/revenue growth vs RWAY's 12.8%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | ARCC | 32.9% NII/revenue growth vs RWAY's 12.8% |
| Value | RWAY | Lower P/E (5.0x vs 9.9x) |
| Quality / Margins | ARCC | Efficiency ratio 0.1% vs RWAY's 0.2% (lower = leaner) |
| Stability / Safety | RWAY | Beta 0.72 vs ARCC's 0.77, lower leverage |
| Dividends | RWAY | 20.5% yield, vs ARCC's 2.0% |
| Momentum (1Y) | ARCC | +0.4% vs RWAY's -8.7% |
| Efficiency (ROA) | ARCC | Efficiency ratio 0.1% vs RWAY's 0.2% |
RWAY vs ARCC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLRWAYLAGGINGARCC
ARCCAres Capital Corporat…
2leads
RWAYRunway Growth Finance…
3leads
6 Total Categories
CATEGORYLEADERvs ARCCMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ARCC3/5
Valuation MetricsMultiples, price ratios, and targets
RWAY6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
RWAY5/9
Total Returns1Y, 3Y, 5Y total returns with dividends
ARCC6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
RWAY1/1
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 — 22.4x RWAY's $140M. ARCC is the more profitable business, keeping 41.3% of every revenue dollar as net income compared to RWAY's 24.3%.
| Metric | RWAYRunway Growth Fin… | ARCCAres Capital Corp… |
|---|---|---|
| RevenueTrailing 12 months | $140M | $3.1B |
| EBITDAEarnings before interest/tax | $75M | $2.0B |
| Net IncomeAfter-tax profit | $32M | $1.1B |
| Free Cash FlowCash after capex | $54M | $1.1B |
| Gross MarginGross profit ÷ Revenue | +78.5% | +75.7% |
| Operating MarginEBIT ÷ Revenue | +54.7% | +69.7% |
| Net MarginNet income ÷ Revenue | +24.3% | +41.3% |
| FCF MarginFCF ÷ Revenue | +132.9% | +36.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -100.0% | -63.9% |
ARCC leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
RWAY leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 7.3x trailing earnings, RWAY trades at a 28% valuation discount to ARCC's 10.2x P/E. On an enterprise value basis, RWAY's 8.8x EV/EBITDA is more attractive than ARCC's 13.1x.
| Metric | RWAYRunway Growth Fin… | ARCCAres Capital Corp… |
|---|---|---|
| Market CapShares × price | $247M | $13.6B |
| Enterprise ValueMkt cap + debt − cash | $679M | $28.7B |
| Trailing P/EPrice ÷ TTM EPS | 7.34x | 10.19x |
| Forward P/EPrice ÷ next-FY EPS est. | 4.95x | 9.92x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.99x |
| EV / EBITDAEnterprise value multiple | 8.84x | 13.09x |
| Price / SalesMarket cap ÷ Revenue | 1.76x | 4.33x |
| Price / BookPrice ÷ Book value/share | 0.52x | 0.93x |
| Price / FCFMarket cap ÷ FCF | 1.32x | 11.92x |
RWAY leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
RWAY leads this category, winning 5 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 $7 for RWAY. RWAY carries lower financial leverage with a 0.93x debt-to-equity ratio, signaling a more conservative balance sheet compared to ARCC's 1.12x. On the Piotroski fundamental quality scale (0–9), RWAY scores 7/9 vs ARCC's 4/9, reflecting strong financial health.
| Metric | RWAYRunway Growth Fin… | ARCCAres Capital Corp… |
|---|---|---|
| ROE (TTM)Return on equity | +6.7% | +8.1% |
| ROA (TTM)Return on assets | +3.3% | +3.8% |
| ROICReturn on invested capital | +5.7% | +5.7% |
| ROCEReturn on capital employed | +7.5% | +7.5% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 4 |
| Debt / EquityFinancial leverage | 0.93x | 1.12x |
| Net DebtTotal debt minus cash | $432M | $15.1B |
| Cash & Equiv.Liquid assets | $18M | $924M |
| Total DebtShort + long-term debt | $450M | $16.0B |
| Interest CoverageEBIT ÷ Interest expense | 1.69x | 2.98x |
RWAY leads this category, winning 5 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 $14,704 today (with dividends reinvested), compared to $10,597 for RWAY. Over the past 12 months, ARCC leads with a +0.4% total return vs RWAY's -8.7%. The 3-year compound annual growth rate (CAGR) favors ARCC at 10.3% vs RWAY's 1.2% — a key indicator of consistent wealth creation.
| Metric | RWAYRunway Growth Fin… | ARCCAres Capital Corp… |
|---|---|---|
| YTD ReturnYear-to-date | -20.8% | -4.9% |
| 1-Year ReturnPast 12 months | -8.7% | +0.4% |
| 3-Year ReturnCumulative with dividends | +3.5% | +34.2% |
| 5-Year ReturnCumulative with dividends | +6.0% | +47.0% |
| 10-Year ReturnCumulative with dividends | +6.0% | +139.2% |
| CAGR (3Y)Annualised 3-year return | +1.2% | +10.3% |
ARCC leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — RWAY and ARCC each lead in 1 of 2 comparable metrics.
Risk & Volatility
RWAY is the less volatile stock with a 0.72 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 81.0% from its 52-week high vs RWAY's 59.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RWAYRunway Growth Fin… | ARCCAres Capital Corp… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.72x | 0.77x |
| 52-Week HighHighest price in past year | $11.41 | $23.42 |
| 52-Week LowLowest price in past year | $6.36 | $17.40 |
| % of 52W HighCurrent price vs 52-week peak | +59.9% | +81.0% |
| RSI (14)Momentum oscillator 0–100 | 50.8 | 56.7 |
| Avg Volume (50D)Average daily shares traded | 599K | 7.5M |
Evenly matched — RWAY and ARCC each lead in 1 of 2 comparable metrics.
Analyst Outlook
RWAY leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates RWAY as "Hold" and ARCC as "Buy". Consensus price targets imply 46.4% upside for RWAY (target: $10) vs 15.4% for ARCC (target: $22). For income investors, RWAY offers the higher dividend yield at 20.53% vs ARCC's 2.02%.
| Metric | RWAYRunway Growth Fin… | ARCCAres Capital Corp… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $10.00 | $21.88 |
| # AnalystsCovering analysts | 8 | 32 |
| Dividend YieldAnnual dividend ÷ price | +20.5% | +2.0% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $1.40 | $0.38 |
| Buyback YieldShare repurchases ÷ mkt cap | +5.1% | 0.0% |
RWAY leads this category, winning 1 of 1 comparable metric.
Key Takeaway
RWAY leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). ARCC leads in 2 (Income & Cash Flow, Total Returns). 1 tied.
Best OverallRunway Growth Finance Corp. (RWAY)Leads 3 of 6 categories
Loading custom metrics...
RWAY vs ARCC: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RWAY 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. 8% for Runway Growth Finance Corp. (RWAY). Runway Growth Finance Corp. (RWAY) offers the better valuation at 7. 3x trailing P/E (5. 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 — RWAY or ARCC?
On trailing P/E, Runway Growth Finance Corp.
(RWAY) is the cheapest at 7. 3x versus Ares Capital Corporation at 10. 2x. On forward P/E, Runway Growth Finance Corp. is actually cheaper at 5. 0x.
03Which is the better long-term investment — RWAY or ARCC?
Over the past 5 years, Ares Capital Corporation (ARCC) delivered a total return of +47.
0%, compared to +6. 0% for Runway Growth Finance Corp. (RWAY). Over 10 years, the gap is even starker: ARCC returned +139. 2% versus RWAY's +6. 0%. 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 — RWAY or ARCC?
By beta (market sensitivity over 5 years), Runway Growth Finance Corp.
(RWAY) is the lower-risk stock at 0. 72β versus Ares Capital Corporation's 0. 77β — meaning ARCC is approximately 8% more volatile than RWAY relative to the S&P 500. On balance sheet safety, Runway Growth Finance Corp. (RWAY) carries a lower debt/equity ratio of 93% versus 112% for Ares Capital Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — RWAY or ARCC?
By revenue growth (latest reported year), Ares Capital Corporation (ARCC) is pulling ahead at 32.
9% versus 12. 8% for Runway Growth Finance Corp. (RWAY). On earnings-per-share growth, the picture is similar: Ares Capital Corporation grew EPS -23. 8% year-over-year, compared to -50. 8% for Runway Growth Finance 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.
06Which has better profit margins — RWAY or ARCC?
Ares Capital Corporation (ARCC) is the more profitable company, earning 41.
3% net margin versus 24. 3% for Runway Growth Finance Corp. — 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 54. 7% for RWAY. At the gross margin level — before operating expenses — RWAY leads at 78. 5%, 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 RWAY or ARCC more undervalued right now?
On forward earnings alone, Runway Growth Finance Corp.
(RWAY) trades at 5. 0x forward P/E versus 9. 9x for Ares Capital Corporation — 5. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RWAY: 46. 4% to $10. 00.
08Which pays a better dividend — RWAY or ARCC?
All stocks in this comparison pay dividends.
Runway Growth Finance Corp. (RWAY) offers the highest yield at 20. 5%, versus 2. 0% for Ares Capital Corporation (ARCC).
09Is RWAY 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. 2% 10Y return). Both have compounded well over 10 years (ARCC: +139. 2%, RWAY: +6. 0%), 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 RWAY 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: RWAY 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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
Revenue Growth>
%
(RWAY: 12.8% · ARCC: 32.9%)Net Margin>
%
(RWAY: 24.3% · ARCC: 41.3%)P/E Ratio<
x
(RWAY: 7.3x · ARCC: 10.2x)You Might Also Compare
Based on how these companies actually compete and overlap — not just which sector they're filed under.