STRR vs BBDC vs ARCC vs CODI

For growth investors, Ares Capital Corporation (ARCC) is the stronger pick with 32.

9% revenue growth year-over-year, versus -66. 9% for Star Equity Holdings, Inc. (STRR). Barings BDC, Inc. (BBDC) offers the better valuation at 9. 5x trailing P/E (9. 2x forward), making it the more compelling value choice. Analysts rate Barings BDC, Inc. (BBDC) a "Buy" — based on 19 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, Barings BDC, Inc.

(BBDC) is the cheapest at 9. 5x versus Ares Capital Corporation at 10. 3x. On forward P/E, Barings BDC, Inc. is actually cheaper at 9. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Barings BDC, Inc. wins at 0. 22x versus Ares Capital Corporation's 0. 97x — 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 -48. 3% for Star Equity Holdings, Inc. (STRR). Over 10 years, the gap is even starker: ARCC returned +139. 7% versus BBDC's +20. 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), Star Equity Holdings, Inc.

(STRR) is the lower-risk stock at 0. 19β versus Compass Diversified's 1. 09β — meaning CODI is approximately 467% more volatile than STRR relative to the S&P 500. On balance sheet safety, Star Equity Holdings, Inc. (STRR) carries a lower debt/equity ratio of 3% versus 3% for Compass Diversified — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Ares Capital Corporation (ARCC) is pulling ahead at 32.

9% versus -66. 9% for Star Equity Holdings, Inc. (STRR). On earnings-per-share growth, the picture is similar: Barings BDC, Inc. grew EPS -6. 7% year-over-year, compared to -1426. 1% for Compass Diversified. Over a 3-year CAGR, CODI leads at 2. 2% annualised revenue growth. 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 -19. 6% for Star Equity Holdings, Inc. — meaning it keeps 41. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BBDC leads at 85. 2% versus -15. 8% for STRR. 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, Barings BDC, Inc. (BBDC) is the more undervalued stock at a PEG of 0. 22x versus Ares Capital Corporation's 0. 97x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Barings BDC, Inc. (BBDC) trades at 9. 2x forward P/E versus 145. 3x for Compass Diversified — 136. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BBDC: 35. 9% to $12. 50.

All stocks in this comparison pay dividends.

Barings BDC, Inc. (BBDC) offers the highest yield at 12. 9%, versus 2. 0% for Ares Capital Corporation (ARCC).

For long-horizon retirement investors, Star Equity Holdings, Inc.

(STRR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 19), 6. 9% yield). Both have compounded well over 10 years (STRR: +53. 8%, CODI: +52. 1%), 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.

These companies operate in different sectors (STRR (Healthcare) and BBDC (Financial Services) and ARCC (Financial Services) and CODI (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: STRR is a small-cap income-oriented stock; BBDC is a small-cap high-growth stock; ARCC is a mid-cap high-growth stock; CODI is a small-cap income-oriented 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.