RWAY vs HTGC vs ARCC vs TPVG

For growth investors, TriplePoint Venture Growth BDC Corp.

(TPVG) is the stronger pick with 36. 6% revenue growth year-over-year, versus 12. 8% for Runway Growth Finance Corp. (RWAY). TriplePoint Venture Growth BDC Corp. (TPVG) offers the better valuation at 4. 7x trailing P/E (6. 2x forward), making it the more compelling value choice. Analysts rate Hercules Capital, Inc. (HTGC) a "Buy" — based on 31 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, TriplePoint Venture Growth BDC Corp.

(TPVG) is the cheapest at 4. 7x versus Ares Capital Corporation at 10. 2x. On forward P/E, Runway Growth Finance Corp. is actually cheaper at 4. 7x — 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. 97x versus TriplePoint Venture Growth BDC Corp. 's 6. 14x — 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 +48.

0%, compared to -15. 2% for TriplePoint Venture Growth BDC Corp. (TPVG). Over 10 years, the gap is even starker: HTGC returned +169. 5% versus RWAY's +3. 7%. 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), Runway Growth Finance Corp.

(RWAY) is the lower-risk stock at 0. 68β versus TriplePoint Venture Growth BDC Corp. 's 0. 77β — meaning TPVG is approximately 14% 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 133% for TriplePoint Venture Growth BDC Corp. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), TriplePoint Venture Growth BDC Corp.

(TPVG) is pulling ahead at 36. 6% versus 12. 8% for Runway Growth Finance Corp. (RWAY). On earnings-per-share growth, the picture is similar: TriplePoint Venture Growth BDC Corp. grew EPS 48. 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.

Hercules Capital, Inc.

(HTGC) is the more profitable company, earning 62. 1% net margin versus 24. 3% for Runway Growth Finance Corp. — meaning it keeps 62. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TPVG leads at 77. 9% versus 54. 7% for RWAY. At the gross margin level — before operating expenses — HTGC leads at 87. 2%, 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 TriplePoint Venture Growth BDC Corp. 's 6. 14x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Runway Growth Finance Corp. (RWAY) trades at 4. 7x forward P/E versus 9. 9x for Ares Capital Corporation — 5. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TPVG: 55. 1% to $8. 95.

All stocks in this comparison pay dividends.

Runway Growth Finance Corp. (RWAY) offers the highest yield at 21. 4%, versus 2. 0% for Ares Capital Corporation (ARCC).

For long-horizon retirement investors, Hercules Capital, Inc.

(HTGC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 68), 8. 8% yield, +169. 5% 10Y return). Both have compounded well over 10 years (HTGC: +169. 5%, TPVG: +91. 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: RWAY is a small-cap deep-value stock; HTGC is a small-cap high-growth stock; ARCC is a mid-cap high-growth stock; TPVG is a small-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.