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ARCC vs PFLT
Which Stock Would AI Choose? Ares Capital Corporation (ARCC) vs. PennantPark Floating Rate Capital (PFLT) Stock Comparison
Key Takeaways
- ARCC is the largest publicly traded business development company (BDC), while PFLT is a smaller, floating-rate-focused BDC with a different risk and yield profile.
- Recent earnings show divergent trajectories: ARCC reported slightly softer core earnings but is pursuing an accretive acquisition, whereas PFLT has reset its dividend framework amid thinner income coverage.
- ARCC trades near its net asset value (NAV) per share, while PFLT trades at a much deeper discount to NAV, reflecting distinct market sentiment.
- Tickeron AI Verdict: ARCC — Tickeron's AI currently favors Ares Capital for its greater scale, trend consistency, and relative earnings stability over PennantPark Floating Rate Capital.
- For more context, explore ARCC Major News and ARCC Today's Price Move, as well as PFLT Major News and PFLT Today's Price Move.
- To see how AI approaches this and other pairings, explore the Trending AI Robots.
Introduction
Income-focused investors frequently compare business development companies (BDCs), which lend to middle-market private companies and distribute most of their earnings as dividends. This stock comparison examines ARCC and PFLT, two widely followed names in specialty finance that differ sharply in scale, strategy, and market positioning. Both offer double-digit yields that appeal to dividend-seeking traders and investors, yet their recent performance and outlooks have diverged. Understanding the contrasts in business model, portfolio composition, credit quality, and relative performance can help readers evaluate which name better suits the current market environment.
ARCC Overview and Recent Performance
ARCC, or Ares Capital Corporation, is the largest publicly traded BDC by market capitalization, providing first-lien senior secured loans, second-lien debt, and equity to middle-market companies. In recent weeks, the stock has traded below the midpoint of its 52-week range and near its NAV per share, which stood at about $19.31 at the latest quarter end.
The most significant recent development was the announcement of a definitive agreement to acquire MidCap Financial Investment Corporation (MFIC) in a transaction valued at roughly $2.6 billion, targeting a close in the first half of 2027. Management has described the deal as modestly accretive to core earnings per share (EPS). At the same time, third-quarter core EPS of $0.46 came in modestly below the $0.48 quarterly dividend, placing the payout's sustainability in focus. Non-accrual loans rose on a year-over-year basis but remain below historical averages, and a historically strong investment backlog supports a more constructive near-term outlook.
PFLT Overview and Recent Performance
PFLT, or PennantPark Floating Rate Capital, is a smaller BDC focused almost entirely on floating-rate, first-lien senior secured loans, with roughly 99% of its debt portfolio carrying floating rates. In recent quarters, falling base rates have compressed the company's investment income, prompting a reset of its dividend framework to a lower base monthly payout supplemented by a variable component tied to net investment income (NII).
Recent performance reflects this adjustment. Core NII has declined sequentially, and the stock trades at a substantial discount to its NAV per share of about $10.26, with a market capitalization well below $1 billion. Credit metrics remain conservative, with non-accruals under 1% of the portfolio at cost. Management is scaling a joint venture, PSSL II, toward more than $1 billion in assets as a key earnings catalyst, though the ramp is expected to unfold over the next 12 to 18 months.
Trending AI Robots
For traders who prefer a data-driven approach to the question of which stock to favor, Tickeron's Trending AI Robots page offers a curated view of AI-powered trading systems. Tickeron hosts hundreds of AI trading bots that collectively monitor and trade thousands of different tickers, each built with its own trading style, strategy, timeframe, performance history, and statistical profile. Because not every bot suits every market condition, the Trending AI Robots section highlights only those systems currently best aligned with prevailing market dynamics. This selection process helps traders identify strategies whose momentum and parameters match today's environment. Exploring the Trending AI Robots can provide an additional, systematic lens on relative positioning between names like ARCC and PFLT.
Head-to-Head Comparison
The clearest contrast between these two BDCs is scale. ARCC operates a diversified portfolio spanning hundreds of companies and more than $29 billion in investments, supported by substantial liquidity and institutional funding access. PFLT operates a far smaller, more concentrated book centered on core middle-market, first-lien floating-rate loans.
Growth drivers also differ. ARCC is pursuing inorganic growth through the MFIC acquisition and benefits from a large, diversified sourcing engine. PFLT relies on organic origination and the ramp of its PSSL II joint venture. On risk, PFLT's near-total floating-rate exposure makes its income highly sensitive to interest-rate policy, while ARCC holds a more balanced mix, with roughly 70% floating-rate instruments. Market sentiment reflects these dynamics: ARCC trades near NAV, while PFLT trades at a notably wider discount, indicating greater perceived uncertainty around PFLT's earnings and payout trajectory.
Tickeron AI Verdict
Based on observable factors such as trend consistency, relative stability, scale, and catalyst positioning, Tickeron's AI currently favors ARCC in this matchup. Ares Capital's larger, diversified portfolio, its near-NAV valuation, a sizable investment backlog, and a defined growth catalyst in the MFIC acquisition provide a comparatively steadier foundation than PFLT's more rate-sensitive, dividend-reset profile. While PFLT offers conservative credit metrics and a deep discount to NAV that some investors may find attractive, its thinner income coverage and pending joint-venture ramp introduce greater near-term uncertainty. Accordingly, the AI's preference leans toward ARCC as the more consistent relative performer in the current environment.
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 PFLT 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 28 of 44 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 64%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator 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 43 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 48%.
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 20 of 46 cases over the following month. The odds of a continued upward trend are 43%.
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 +0.57% 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 has been in the overbought zone for 1 day. Expect a price pull-back in the near 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 48 (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).
PFLT's RSI Indicator recovers from oversold territory
The RSI Oscillator for PFLT moved out of oversold territory on October 22, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 34 similar instances when the indicator left oversold territory. In 21 of the 34 cases the stock moved higher. This puts the odds of a move higher at 62%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on PFLT as a result. In 36 of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 48%.
The Moving Average Convergence Divergence (MACD) for PFLT just turned positive on October 27, 2026. Looking at past instances where PFLT's MACD turned positive, the stock continued to rise in 26 of 46 cases over the following month. The odds of a continued upward trend are 57%.
PFLT 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.
The 10-day moving average for PFLT 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 16 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 +4.68% 3-day Advance, the price is estimated to grow further. Considering data from situations where PFLT advanced for three days, in 144 of 336 cases, the price rose further within the following month. The odds of a continued upward trend are 43%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 27 of 57 cases where PFLT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 47%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PFLT 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 51%.
PFLT broke above its upper Bollinger Band on October 29, 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 PFLT 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 PE Growth Rating for this company is 22 (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 SMR rating for this company is 44 (best 1 - 100 worst), indicating 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 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 Price Growth Rating for this company is 60 (best 1 - 100 worst), indicating fairly steady price growth. PFLT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 88 (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 (0.671) is normal, around the industry mean (2.412). P/E Ratio (13.490) is within average values for comparable stocks, (-2.386). Projected Growth (PEG Ratio) (0.262) is also within normal values, averaging (1.319). Dividend Yield (0.033) settles around the average of (0.270) among similar stocks. P/S Ratio (11.249) is also within normal values, averaging (15.694).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PFLT’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.
ARCC | PFLT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 22 | 10 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 86 Overvalued | 88 Overvalued | |
PROFIT vs RISK RATING 1..100 | 26 | 100 | |
SMR RATING 1..100 | 11 | 44 | |
PRICE GROWTH RATING 1..100 | 48 | 60 | |
P/E GROWTH RATING 1..100 | 12 | 22 | |
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.
ARCC's Valuation (86) in the null industry is in the same range as PFLT (88). This means that ARCC’s stock grew similarly to PFLT’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 PFLT (100). This means that ARCC’s stock grew significantly faster than PFLT’s over the last 12 months.
ARCC's SMR Rating (11) in the null industry is somewhat better than the same rating for PFLT (44). This means that ARCC’s stock grew somewhat faster than PFLT’s over the last 12 months.
ARCC's Price Growth Rating (48) in the null industry is in the same range as PFLT (60). This means that ARCC’s stock grew similarly to PFLT’s over the last 12 months.
ARCC's P/E Growth Rating (12) in the null industry is in the same range as PFLT (22). This means that ARCC’s stock grew similarly to PFLT’s over the last 12 months.
| ARCC | PFLT | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 50% | 1 day ago 62% |
| Stochastic ODDS (%) | 1 day ago 31% | 1 day ago 47% |
| Momentum ODDS (%) | 1 day ago 48% | 1 day ago 48% |
| MACD ODDS (%) | 1 day ago 43% | 1 day ago 57% |
| TrendWeek ODDS (%) | 1 day ago 41% | 1 day ago 53% |
| TrendMonth ODDS (%) | 1 day ago 39% | 1 day ago 42% |
| Advances ODDS (%) | 1 day ago 39% | 14 days ago 43% |
| Declines ODDS (%) | 6 days ago 40% | 1 day ago 51% |
| BollingerBands ODDS (%) | 1 day ago 18% | 1 day ago 52% |
| Aroon ODDS (%) | 1 day ago 34% | 1 day ago 53% |
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 PFLT’s FA Score has 1 green FA rating(s).
- ARCC’s FA Score: 3 green, 2 red.
- PFLT’s FA Score: 1 green, 4 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 PFLT’s TA Score has 6 bullish TA indicator(s).
- ARCC’s TA Score: 7 bullish, 3 bearish.
- PFLT’s TA Score: 6 bullish, 4 bearish.
Price Growth
ARCC (@Investment Managers) experienced а +2.26% price change this week, while PFLT (@Investment Managers) price change was +0.88% 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.
PFLT is expected to report earnings on Nov 23, 2026.
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% | +0.10% | ||
| OBDC - ARCC | 80% Closely correlated | N/A | ||
| GBDC - ARCC | 78% Closely correlated | -0.08% | ||
| BXSL - ARCC | 76% Closely correlated | -0.50% | ||
| MSDL - ARCC | 72% Closely correlated | -0.43% | ||
| NMFC - ARCC | 72% Closely correlated | -1.02% | ||
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PFLT and
Correlation & Price change
A.I.dvisor indicates that over the last year, PFLT has been closely correlated with PNNT. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if PFLT jumps, then PNNT could also see price increases.
| Ticker / NAME | Correlation To PFLT | 1D Price Change % | ||
|---|---|---|---|---|
| PFLT | 100% | -0.73% | ||
| PNNT - PFLT | 72% Closely correlated | -2.67% | ||
| OCSL - PFLT | 71% Closely correlated | -0.72% | ||
| ARCC - PFLT | 70% Closely correlated | +0.10% | ||
| BCSF - PFLT | 67% Closely correlated | +0.36% | ||
| CGBD - PFLT | 67% Closely correlated | -0.18% | ||
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