SAZ vs ARCC

For growth investors, Saratoga Investment Corp 8.

50% (SAZ) is the stronger pick with 35. 4% revenue growth year-over-year, versus 32. 9% for Ares Capital Corporation (ARCC). Ares Capital Corporation (ARCC) offers the better valuation at 10. 2x trailing P/E (9. 9x 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.

On trailing P/E, Ares Capital Corporation (ARCC) is the cheapest at 10.

2x versus Saratoga Investment Corp 8. 50% at 12. 7x. On forward P/E, Ares Capital Corporation is actually cheaper at 9. 9x.

Over the past 5 years, Ares Capital Corporation (ARCC) delivered a total return of +47.

0%, compared to +27. 1% for Saratoga Investment Corp 8. 50% (SAZ). Over 10 years, the gap is even starker: ARCC returned +139. 2% versus SAZ's +27. 1%. 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), Saratoga Investment Corp 8.

50% (SAZ) is the lower-risk stock at 0. 52β versus Ares Capital Corporation's 0. 77β — meaning ARCC is approximately 48% more volatile than SAZ relative to the S&P 500. On balance sheet safety, Ares Capital Corporation (ARCC) carries a lower debt/equity ratio of 112% versus 199% for Saratoga Investment Corp 8. 50% — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Saratoga Investment Corp 8.

50% (SAZ) is pulling ahead at 35. 4% versus 32. 9% for Ares Capital Corporation (ARCC). On earnings-per-share growth, the picture is similar: Saratoga Investment Corp 8. 50% grew EPS 184. 5% 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 29. 8% for Saratoga Investment Corp 8. 50% — 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 33. 9% for SAZ. 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.

On forward earnings alone, Ares Capital Corporation (ARCC) trades at 9.

9x forward P/E versus 10. 3x for Saratoga Investment Corp 8. 50% — 0. 4x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

Saratoga Investment Corp 8. 50% (SAZ) offers the highest yield at 11. 4%, versus 2. 0% for Ares Capital Corporation (ARCC).

For long-horizon retirement investors, Saratoga Investment Corp 8.

50% (SAZ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 52), 11. 4% yield). Both have compounded well over 10 years (SAZ: +27. 1%, ARCC: +139. 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.

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.