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ARCC vs FSK
Which Stock Would AI Choose? Ares Capital (ARCC) vs. FS KKR Capital (FSK) Stock Comparison
Key Takeaways
- Tickeron AI Verdict: ARCC — Ares Capital's steadier trend, healthier credit quality, and premium market positioning give it the edge over FSK in the current environment.
- Both companies are business development companies (BDCs) that lend to private middle-market U.S. businesses, but they differ sharply in size, valuation, and recent credit performance.
- ARCC trades near its net asset value (NAV), while FSK trades at a deep discount that reflects ongoing write-downs and investor caution.
- Dividend yields diverge significantly: FSK's trailing yield is well into the double digits, but its distributions carry greater sustainability risk than ARCC's.
- You can explore more on ARCC Major News and ARCC Today's Price Move, as well as FSK Major News and FSK Today's Price Move.
- For automated, data-driven trading ideas across this comparison and thousands of other tickers, explore the Trending AI Robots.
Introduction
Investors hunting for high-yield income frequently weigh business development companies (BDCs), which lend capital to private middle-market firms and pass most of their income to shareholders. ARCC (Ares Capital Corporation) and FSK (FS KKR Capital Corp.) are two of the most widely followed names in this segment, yet they present very different risk-and-return profiles. This stock comparison examines their relative performance, business models, and market positioning to help income-oriented traders and investors understand which company currently demonstrates more consistent strength. The contrast between a market leader trading near book value and a smaller peer facing credit headwinds makes this a timely and instructive comparison.
ARCC Overview and Recent Performance
ARCC, Ares Capital Corporation, is one of the largest publicly traded BDCs, with a diversified portfolio spanning first-lien and second-lien senior secured loans, subordinated debt, and equity across software, healthcare, industrials, and business services. In recent weeks, the stock has traded in the high-teens to low-$20s range, supported by a market capitalization near $14 billion and a forward dividend yield around 10%.
Recent market activity has reflected a mix of caution and resilience. Core earnings dipped modestly below the quarterly dividend in one recent quarter, but management noted that realized gains, carried taxable income, and healthy portfolio credit quality continue to support the payout. The company has maintained a stable-to-growing dividend for 67 consecutive quarters. Sentiment has been tempered by broader private-credit concerns, including the potential impact of artificial intelligence on software borrowers, yet the stock has generally held near its NAV rather than sliding to a steep discount — a sign of relative investor confidence.
FSK Overview and Recent Performance
FSK, FS KKR Capital Corp., is a smaller BDC advised by a partnership between FS Investments and KKR Credit, focusing primarily on senior secured debt of private middle-market U.S. companies. The stock has experienced a materially weaker stretch than its larger peer, trading near $11 with a market capitalization of roughly $3 billion — a steep discount to its book value per share in the high-teens.
Recent performance has been driven by credit deterioration. Rising non-accrual assets (loans no longer generating interest income), spread widening in parts of the portfolio, and meaningful write-downs have pressured net asset value and produced negative earnings per share on a trailing basis. In response, management announced strategic actions including a share repurchase program, a KKR tender offer, a convertible preferred investment, and a fee waiver aimed at stabilizing distributions. A notable analyst downgrade to Underweight underscored persistent concerns, and the stock's double-digit trailing yield reflects elevated risk rather than straightforward income strength.
Trending AI Robots
Tickeron's Trending AI Robots page showcases a curated selection of its AI trading bots. Tickeron offers hundreds of automated trading bots that collectively trade thousands of different tickers, each with its own strategy, timeframe, performance history, and set of securities. Rather than displaying every bot, the platform highlights only those best suited to current market conditions in this dedicated section, helping traders filter the signal from the noise. Bots vary in style — from short-term momentum approaches to longer-horizon trend following — with distinct statistics for win rate, drawdown, and volatility. Exploring the Trending AI Robots page can offer a data-driven starting point for evaluating opportunities across names like ARCC and FSK and beyond.
Head-to-Head Comparison
The two BDCs diverge most clearly on credit quality and valuation. ARCC maintains a larger, more diversified portfolio, modest leverage, and low levels of problem assets, which support a share price near NAV and a lower beta (a measure of volatility relative to the market). Its growth drivers include disciplined originations and a long record of distribution continuity.
FSK, by contrast, offers a much higher headline yield but trades at a significant discount to book value, reflecting write-downs, elevated non-accruals, and negative trailing earnings. Its risk factors include weaker portfolio performance and higher net leverage, offset in part by KKR's backstop measures. On momentum, ARCC has held up far better over recent months, while FSK's year-to-date decline has been pronounced. Sector exposure is similar — both lend to middle-market U.S. companies — but market sentiment clearly favors the larger, more stable operator.
Tickeron AI Verdict
Based on observable factors such as trend consistency, credit stability, valuation discipline, and relative momentum, Tickeron's AI would likely favor ARCC over FSK in the current environment. ARCC's steadier price trend, healthier portfolio metrics, and premium market positioning suggest a more durable risk-adjusted profile, whereas FSK's deep discount and ongoing credit headwinds point to a less settled trend. This verdict is probabilistic rather than definitive: it reflects current conditions, and the relative positioning of the two stocks could shift as credit markets and company-specific fundamentals evolve.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ARCC is a Buy and FSK is a Buy.
ARCC in upward trend: price rose above 50-day moving average on November 04, 2026
ARCC moved above its 50-day moving average on November 04, 2026 date and that indicates a change from a downward trend to an upward trend. In 25 of 44 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 57%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ARCC's RSI Indicator exited the oversold zone, 11 of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 50%.
The Momentum Indicator moved above the 0 level on October 29, 2026. You may want to consider a long position or call options on ARCC as a result. In 42 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 47%.
The Moving Average Convergence Divergence (MACD) for ARCC just turned positive on October 22, 2026. Looking at past instances where ARCC's MACD turned positive, the stock continued to rise in 19 of 46 cases over the following month. The odds of a continued upward trend are 41%.
The 10-day moving average for ARCC crossed bullishly above the 50-day moving average on November 09, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 50%.
Following a +1.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where ARCC advanced for three days, in 133 of 342 cases, the price rose further within the following month. The odds of a continued upward trend are 39%.
The Aroon Indicator entered an Uptrend today. In 104 of 309 cases where ARCC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 34%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ARCC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 40%.
ARCC broke above its upper Bollinger Band on November 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 11 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 12 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 26 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 49 (best 1 - 100 worst), indicating steady price growth. ARCC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.989) is normal, around the industry mean (2.412). P/E Ratio (14.276) is within average values for comparable stocks, (-2.386). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.319). Dividend Yield (0.100) settles around the average of (0.270) among similar stocks. P/S Ratio (11.792) is also within normal values, averaging (15.694).
FSK in upward trend: 10-day moving average moved above 50-day moving average on November 09, 2026
The 10-day moving average for FSK crossed bullishly above the 50-day moving average on November 09, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 73%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 28, 2026. You may want to consider a long position or call options on FSK as a result. In 56 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 63%.
The Moving Average Convergence Divergence (MACD) for FSK just turned positive on October 27, 2026. Looking at past instances where FSK's MACD turned positive, the stock continued to rise in 29 of 44 cases over the following month. The odds of a continued upward trend are 66%.
FSK moved above its 50-day moving average on November 04, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where FSK advanced for three days, in 175 of 334 cases, the price rose further within the following month. The odds of a continued upward trend are 52%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 29 of 68 cases where FSK's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 43%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FSK declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 50%.
FSK broke above its upper Bollinger Band on November 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for FSK entered a downward trend on October 30, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 4 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.632) is normal, around the industry mean (2.412). P/E Ratio (-8.731) is within average values for comparable stocks, (-2.386). Projected Growth (PEG Ratio) (0.010) is also within normal values, averaging (1.319). Dividend Yield (0.150) settles around the average of (0.270) among similar stocks. P/S Ratio (26.882) is also within normal values, averaging (15.694).
The Tickeron SMR rating for this company is 18 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 46 (best 1 - 100 worst), indicating steady price growth. FSK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 92 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FSK’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is 98 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
ARCC | FSK | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 74 | 39 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 86 Overvalued | 4 Undervalued | |
PROFIT vs RISK RATING 1..100 | 26 | 92 | |
SMR RATING 1..100 | 11 | 18 | |
PRICE GROWTH RATING 1..100 | 49 | 46 | |
P/E GROWTH RATING 1..100 | 12 | 98 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
FSK's Valuation (4) in the null industry is significantly better than the same rating for ARCC (86). This means that FSK’s stock grew significantly faster than ARCC’s over the last 12 months.
ARCC's Profit vs Risk Rating (26) in the null industry is significantly better than the same rating for FSK (92). This means that ARCC’s stock grew significantly faster than FSK’s over the last 12 months.
ARCC's SMR Rating (11) in the null industry is in the same range as FSK (18). This means that ARCC’s stock grew similarly to FSK’s over the last 12 months.
FSK's Price Growth Rating (46) in the null industry is in the same range as ARCC (49). This means that FSK’s stock grew similarly to ARCC’s over the last 12 months.
ARCC's P/E Growth Rating (12) in the null industry is significantly better than the same rating for FSK (98). This means that ARCC’s stock grew significantly faster than FSK’s over the last 12 months.
| ARCC | FSK | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 50% | 2 days ago 43% |
| Stochastic ODDS (%) | 2 days ago 32% | 2 days ago 43% |
| Momentum ODDS (%) | 2 days ago 47% | 2 days ago 63% |
| MACD ODDS (%) | 2 days ago 41% | 2 days ago 66% |
| TrendWeek ODDS (%) | 2 days ago 41% | 2 days ago 53% |
| TrendMonth ODDS (%) | 2 days ago 39% | 2 days ago 56% |
| Advances ODDS (%) | 2 days ago 39% | 2 days ago 52% |
| Declines ODDS (%) | 6 days ago 40% | 17 days ago 50% |
| BollingerBands ODDS (%) | 2 days ago 24% | 2 days ago 34% |
| Aroon ODDS (%) | 2 days ago 34% | 2 days ago 48% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ARCC’s FA Score shows that 3 FA rating(s) are green while FSK’s FA Score has 2 green FA rating(s).
- ARCC’s FA Score: 3 green, 2 red.
- FSK’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ARCC’s TA Score shows that 7 TA indicator(s) are bullish while FSK’s TA Score has 5 bullish TA indicator(s).
- ARCC’s TA Score: 7 bullish, 3 bearish.
- FSK’s TA Score: 5 bullish, 5 bearish.
Price Growth
ARCC (@Investment Managers) experienced а +2.26% price change this week, while FSK (@Investment Managers) price change was +7.55% for the same time period.
The average weekly price growth across all stocks in the @Investment Managers industry was -2.64%. For the same industry, the average monthly price growth was -2.86%, and the average quarterly price growth was -1.76%.
Reported Earning Dates
ARCC is expected to report earnings on Feb 10, 2027.
FSK is expected to report earnings on Mar 01, 2027.
Industries' Descriptions
@Investment Managers (-2.64% weekly)Investment Managers manage financial assets and other investments of clients. Management includes designing a short- or long-term strategy for buying/holding and selling of portfolio holdings. It can also include tax services and other aspects of financial planning as well. While it is perceived that the industry is faced with growing competition from robo-advisors/digital platforms and passive/ index-tracking funds, many investors still find value in actively managed in-person services that investment management companies often emphasize on. At the same time, many wealth managers are also incorporating digital initiatives/low cost options in addition to their in-person customized services. Their main sources of revenues are fees as a percentage of assets under management, in addition to a certain portion of clients’ gains from asset appreciation. BlackRock, Inc., Blackstone Group Inc and Brookfield Asset Management are some of the major investment management companies.
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ARCC and
Correlation & Price change
A.I.dvisor indicates that over the last year, ARCC has been closely correlated with OBDC. These tickers have moved in lockstep 80% of the time. This A.I.-generated data suggests there is a high statistical probability that if ARCC jumps, then OBDC could also see price increases.
| Ticker / NAME | Correlation To ARCC | 1D Price Change % | ||
|---|---|---|---|---|
| ARCC | 100% | +0.47% | ||
| OBDC - ARCC | 80% Closely correlated | -0.09% | ||
| GBDC - ARCC | 78% Closely correlated | +0.39% | ||
| BXSL - ARCC | 76% Closely correlated | +0.96% | ||
| MSDL - ARCC | 72% Closely correlated | +0.29% | ||
| NMFC - ARCC | 72% Closely correlated | -0.58% | ||
More | ||||
FSK and
Correlation & Price change
A.I.dvisor indicates that over the last year, FSK has been closely correlated with NMFC. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is a high statistical probability that if FSK jumps, then NMFC could also see price increases.
| Ticker / NAME | Correlation To FSK | 1D Price Change % | ||
|---|---|---|---|---|
| FSK | 100% | +1.10% | ||
| NMFC - FSK | 66% Closely correlated | -0.58% | ||
| ARCC - FSK | 66% Loosely correlated | +0.47% | ||
| OBDC - FSK | 64% Loosely correlated | -0.09% | ||
| BBDC - FSK | 63% Loosely correlated | +0.11% | ||
| BXSL - FSK | 62% Loosely correlated | +0.96% | ||
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