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ARCC vs SLRC
Which Stock Would AI Choose? Ares Capital Corporation (ARCC) vs. SLR Investment Corp. (SLRC) Stock Comparison
Key Takeaways
- Both ARCC and SLRC are business development companies (BDCs) offering high dividend yields around 10%, appealing to income-focused investors.
- ARCC, the largest BDC by market cap at $13.4 billion, provides greater scale and diversification compared to SLRC's $857 million.
- Recent market activity shows ARCC experiencing dips amid Q1 earnings anticipation with a projected 4% EPS decline, while SLRC maintains steady dividend payouts.
- SLRC has shown stronger one-year returns at 11.1% versus ARCC's 2.8%, though year-to-date both hover around 4-5%.
- Investor sentiment favors ARCC for its size and liquidity, positioning it as a core holding in BDC portfolios.
Introduction
Ares Capital Corporation (ARCC) and SLR Investment Corp. (SLRC) are prominent business development companies (BDCs) that provide financing to middle-market firms through debt and equity investments. This stock comparison analyzes their business models, recent performance, and market positioning in the current high-yield environment. Income-oriented investors and traders seeking stable dividends amid interest rate fluctuations will find value in understanding their relative strengths, such as dividend sustainability and portfolio diversification. With both offering yields near 10%, the focus is on risk-adjusted returns and growth potential in recent market activity.
ARCC Overview and Recent Performance
Ares Capital Corporation (ARCC) is the largest publicly traded BDC, with a market cap exceeding $13 billion, specializing in senior secured loans, mezzanine debt, and equity to U.S. middle-market companies. In recent weeks, ARCC's stock has faced downward pressure, lagging broader indices with sessions showing declines of over 2%, amid anticipation for Q1 earnings expected to reflect a 4% EPS drop to $0.48. Net investment income (NII) remains robust, supporting a forward dividend yield of about 10.3%, though competitive private credit dynamics and market volatility have tempered sentiment. Year-to-date gains stand at 5.2%, buoyed by its diversified portfolio across industries.
SLRC Overview and Recent Performance
SLR Investment Corp. (SLRC), a smaller BDC with an $857 million market cap, focuses on secured first-lien, unitranche, and subordinated debt to middle-market businesses, emphasizing yield-oriented strategies. Recent market activity for SLRC has been relatively stable, with quarterly dividends of $0.41 per share maintained, yielding around 10.5%. The stock trades near the middle of its 52-week range, supported by steady net investment income covering payouts, though limited news coverage reflects its smaller scale. One-year performance outperforms ARCC at 11.1%, driven by resilient credit quality in recent quarters.
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Head-to-Head Comparison
Both ARCC and SLRC operate as BDCs under regulatory constraints requiring 90% income distribution as dividends, but ARCC’s massive scale enables broader diversification across 500+ investments, reducing concentration risk versus SLRC’s more focused portfolio. Growth drivers favor ARCC with higher revenue ($3B TTM) and EPS ($1.86), though SLRC offers a lower P/E (9.2 vs. 10). Recent momentum tilts to SLRC on longer-term returns, but ARCC shows better liquidity. Risk factors include interest rate sensitivity and credit defaults, amplified for smaller SLRC. Sector exposure is similar in middle-market lending, but sentiment leans toward ARCC as a benchmark BDC.
Tickeron AI Verdict
Tickeron’s AI models would likely favor ARCC in the current environment due to its superior scale, liquidity, and consistent trend positioning amid private credit competition. While SLRC offers attractive yields and recent relative outperformance, ARCC’s diversification and market leadership provide higher probability of stability and catalysts like earnings beats.
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. 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 SLRC 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 whileSLRC’s FA Score has 1 green FA rating(s).
- ARCC’s FA Score: 3 green, 2 red.
- SLRC’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 SLRC’s TA Score has 5 bullish TA indicator(s).
- ARCC’s TA Score: 4 bullish, 4 bearish.
- SLRC’s TA Score: 5 bullish, 3 bearish.
Price Growth
ARCC (@Investment Managers) experienced а -4.19% price change this week, while SLRC (@Investment Managers) price change was -2.19% for the same time period.
The average weekly price growth across all stocks in the @Investment Managers industry was -2.28%. For the same industry, the average monthly price growth was -2.46%, and the average quarterly price growth was -8.13%.
Reported Earning Dates
ARCC is expected to report earnings on Jul 28, 2026.
SLRC is expected to report earnings on Aug 11, 2026.
Industries' Descriptions
@Investment Managers (-2.28% 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 | SLRC | ARCC / SLRC | |
| Capitalization | 12.8B | 669M | 1,913% |
| EBITDA | N/A | N/A | - |
| Gain YTD | -7.092 | -16.303 | 44% |
| P/E Ratio | 10.94 | 7.48 | 146% |
| Revenue | 1.36B | 101M | 1,348% |
| Total Cash | N/A | 11.2M | - |
| Total Debt | 15.8B | 1.14B | 1,388% |
ARCC | SLRC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 71 | 71 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 3 Undervalued | 10 Undervalued | |
PROFIT vs RISK RATING 1..100 | 33 | 77 | |
SMR RATING 1..100 | 21 | 68 | |
PRICE GROWTH RATING 1..100 | 58 | 71 | |
P/E GROWTH RATING 1..100 | 48 | 75 | |
SEASONALITY SCORE 1..100 | 49 | 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 (3) in the null industry is in the same range as SLRC (10). This means that ARCC’s stock grew similarly to SLRC’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 SLRC (77). This means that ARCC’s stock grew somewhat faster than SLRC’s over the last 12 months.
ARCC's SMR Rating (21) in the null industry is somewhat better than the same rating for SLRC (68). This means that ARCC’s stock grew somewhat faster than SLRC’s over the last 12 months.
ARCC's Price Growth Rating (58) in the null industry is in the same range as SLRC (71). This means that ARCC’s stock grew similarly to SLRC’s over the last 12 months.
ARCC's P/E Growth Rating (48) in the null industry is in the same range as SLRC (75). This means that ARCC’s stock grew similarly to SLRC’s over the last 12 months.
| ARCC | SLRC | |
|---|---|---|
| RSI ODDS (%) | N/A | 2 days ago 65% |
| Stochastic ODDS (%) | 2 days ago 49% | 2 days ago 41% |
| Momentum ODDS (%) | 2 days ago 30% | 2 days ago 47% |
| MACD ODDS (%) | 2 days ago 30% | 2 days ago 49% |
| TrendWeek ODDS (%) | 2 days ago 37% | 2 days ago 40% |
| TrendMonth ODDS (%) | 2 days ago 44% | 2 days ago 46% |
| Advances ODDS (%) | 12 days ago 39% | 14 days ago 36% |
| Declines ODDS (%) | 2 days ago 40% | 8 days ago 40% |
| BollingerBands ODDS (%) | 2 days ago 66% | 2 days ago 51% |
| Aroon ODDS (%) | 2 days ago 36% | 2 days ago 39% |
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SLRC and
Correlation & Price change
A.I.dvisor indicates that over the last year, SLRC has been closely correlated with TSLX. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if SLRC jumps, then TSLX could also see price increases.
| Ticker / NAME | Correlation To SLRC | 1D Price Change % | ||
|---|---|---|---|---|
| SLRC | 100% | -1.25% | ||
| TSLX - SLRC | 69% Closely correlated | -2.17% | ||
| PNNT - SLRC | 67% Closely correlated | -2.62% | ||
| ARCC - SLRC | 58% Loosely correlated | -1.05% | ||
| MFIC - SLRC | 58% Loosely correlated | -1.91% | ||
| FDUS - SLRC | 58% Loosely correlated | -2.32% | ||
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