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ARCC vs PFLT
Which Stock Would AI Choose? Ares Capital Corporation (ARCC) vs. PennantPark Floating Rate Capital Ltd. (PFLT) Stock Comparison
Key Takeaways
- Both ARCC and PFLT are business development companies (BDCs) specializing in senior secured loans to middle-market firms, delivering high yields around 10% for ARCC and 14% for PFLT.
- ARCC, the largest publicly traded BDC, shows consistent net investment income (NII) growth and stability in recent market activity.
- PFLT offers monthly dividends and a focus on floating-rate loans, providing resilience amid interest rate shifts, though it recently missed Q1 2026 EPS estimates.
- In head-to-head relative performance over the past year, ARCC has demonstrated somewhat stronger stock price growth compared to PFLT.
- Tickeron’s AI analysis leans toward ARCC for its scale and trend consistency in the current environment.
Introduction
In the high-yield segment of the market, business development companies (BDCs) like Ares Capital Corporation (ARCC) and PennantPark Floating Rate Capital Ltd. (PFLT) attract income-focused investors seeking elevated dividends from senior loans to middle-market companies. This stock comparison evaluates their business models, recent performance, and market positioning amid shifting interest rates and economic conditions. Traders monitoring BDC relative performance and investors prioritizing yield stability will find insights into growth drivers, risk factors, and sentiment shifts, aiding informed decisions in today's volatile landscape.
ARCC Overview and Recent Performance
Ares Capital Corporation (ARCC) is the world's largest publicly traded BDC, with a market cap exceeding $13 billion, providing direct loans, mezzanine debt, and equity investments primarily to U.S. middle-market companies. In recent weeks, ARCC shares have traded around $18.67 to $19.12, reflecting resilience despite broader market dips. Key influences include steady NII growth, with Q4 2025 results showing $0.52 per share, up from prior quarters, and total investment income exhibiting a 14.4% five-year compound annual growth rate (CAGR). Upcoming Q1 2026 earnings on April 28 carry expectations of $0.48 EPS, bolstering positive sentiment amid a 9.9% dividend yield.
PFLT Overview and Recent Performance
PennantPark Floating Rate Capital Ltd. (PFLT) is a BDC emphasizing senior secured, floating-rate loans to middle-market businesses, offering monthly distributions for enhanced income predictability. Shares have hovered near $8.63 in recent trading, with a 52-week range of $7.68 to $10.88. Recent performance reflects a Q1 2026 EPS of $0.27, missing estimates of $0.30, yet supported by a monthly dividend of $0.1025 per share and a securitization reset that lowered borrowing costs. Analyst targets average above $10, signaling upside potential and favorable market positioning for floating-rate exposure in stabilizing rate environments.
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Head-to-Head Comparison
ARCC and PFLT share BDC structures regulated under the Investment Company Act, focusing on first-lien debt for yield generation, but differ in scale and payout cadence. ARCC’s larger assets under management (AUM) enable broader diversification across industries, reducing concentration risk compared to PFLT’s more targeted floating-rate portfolio, which offers better protection against rate hikes but sensitivity to credit spreads. Recent momentum favors ARCC with steadier price action and NII expansion, while PFLT provides higher yields via monthly payments. Risk factors include non-accrual loans (NCOs) and economic slowdowns impacting portfolio companies, with ARCC exhibiting stronger historical stability. Market sentiment tilts positive for both, though ARCC benefits from its market-leading position.
Tickeron AI Verdict
Tickeron’s AI currently favors ARCC over PFLT due to its superior scale, consistent trend performance, and robust NII growth amid recent market activity. While PFLT’s higher yield and monthly payouts appeal for income, ARCC’s diversification and relative momentum suggest a higher probability of outperformance in the near term, based on observable patterns and catalysts.
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 Disclaimers and Limitations.
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 StrongBuy and PFLT is a StrongBuy.
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 undervalued. 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 whilePFLT’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 4 TA indicator(s) are bullish while PFLT’s TA Score has 4 bullish TA indicator(s).
- ARCC’s TA Score: 4 bullish, 4 bearish.
- PFLT’s TA Score: 4 bullish, 5 bearish.
Price Growth
ARCC (@Investment Managers) experienced а -4.19% price change this week, while PFLT (@Investment Managers) price change was -6.69% for the same time period.
The average weekly price growth across all stocks in the @Investment Managers industry was -2.14%. For the same industry, the average monthly price growth was -2.31%, and the average quarterly price growth was -7.88%.
Reported Earning Dates
ARCC is expected to report earnings on Jul 28, 2026.
PFLT is expected to report earnings on Aug 12, 2026.
Industries' Descriptions
@Investment Managers (-2.14% 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.
| ARCC | PFLT | ARCC / PFLT | |
| Capitalization | 12.8B | 719M | 1,780% |
| EBITDA | N/A | N/A | - |
| Gain YTD | -7.092 | -16.151 | 44% |
| P/E Ratio | 10.94 | 11.51 | 95% |
| Revenue | 1.36B | 77.6M | 1,754% |
| Total Cash | N/A | 90.4M | - |
| Total Debt | 15.8B | 1.67B | 947% |
ARCC | PFLT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 71 | 61 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 3 Undervalued | 4 Undervalued | |
PROFIT vs RISK RATING 1..100 | 33 | 98 | |
SMR RATING 1..100 | 21 | 72 | |
PRICE GROWTH RATING 1..100 | 58 | 72 | |
P/E GROWTH RATING 1..100 | 48 | 55 | |
SEASONALITY SCORE 1..100 | 49 | 90 |
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 (3) in the null industry is in the same range as PFLT (4). This means that ARCC’s stock grew similarly to PFLT’s over the last 12 months.
ARCC's Profit vs Risk Rating (33) in the null industry is somewhat better than the same rating for PFLT (98). This means that ARCC’s stock grew somewhat faster than PFLT’s over the last 12 months.
ARCC's SMR Rating (21) in the null industry is somewhat better than the same rating for PFLT (72). This means that ARCC’s stock grew somewhat faster than PFLT’s over the last 12 months.
ARCC's Price Growth Rating (58) in the null industry is in the same range as PFLT (72). This means that ARCC’s stock grew similarly to PFLT’s over the last 12 months.
ARCC's P/E Growth Rating (48) in the null industry is in the same range as PFLT (55). This means that ARCC’s stock grew similarly to PFLT’s over the last 12 months.
| ARCC | PFLT | |
|---|---|---|
| RSI ODDS (%) | N/A | 2 days ago 57% |
| Stochastic ODDS (%) | 2 days ago 49% | 2 days ago 52% |
| Momentum ODDS (%) | 2 days ago 30% | 2 days ago 41% |
| MACD ODDS (%) | 2 days ago 30% | N/A |
| TrendWeek ODDS (%) | 2 days ago 37% | 2 days ago 47% |
| TrendMonth ODDS (%) | 2 days ago 44% | 2 days ago 44% |
| Advances ODDS (%) | 12 days ago 39% | 14 days ago 44% |
| Declines ODDS (%) | 2 days ago 40% | 2 days ago 47% |
| BollingerBands ODDS (%) | 2 days ago 66% | 2 days ago 61% |
| Aroon ODDS (%) | 2 days ago 36% | 2 days ago 56% |
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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% | -1.05% | ||
| OBDC - ARCC | 80% Closely correlated | -0.74% | ||
| GBDC - ARCC | 78% Closely correlated | -0.49% | ||
| BXSL - ARCC | 75% Closely correlated | -1.65% | ||
| CSWC - ARCC | 73% Closely correlated | +0.96% | ||
| TSLX - ARCC | 71% Closely correlated | -2.17% | ||
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PFLT and
Correlation & Price change
A.I.dvisor indicates that over the last year, PFLT has been closely correlated with ARCC. These tickers have moved in lockstep 71% of the time. This A.I.-generated data suggests there is a high statistical probability that if PFLT jumps, then ARCC could also see price increases.
| Ticker / NAME | Correlation To PFLT | 1D Price Change % | ||
|---|---|---|---|---|
| PFLT | 100% | -3.07% | ||
| ARCC - PFLT | 71% Closely correlated | -1.05% | ||
| CSWC - PFLT | 70% Closely correlated | +0.96% | ||
| OCSL - PFLT | 69% Closely correlated | -1.47% | ||
| GBDC - PFLT | 69% Closely correlated | -0.49% | ||
| PNNT - PFLT | 68% Closely correlated | -2.62% | ||
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