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ARCC vs BRK-A

ARCC
Ares Capital Corporation
BEARISH
Price
$17.86
Market Cap
$12.82B
Sector
Financial Services
AI Confidence
85%
BRK-A
Berkshire Hathaway Inc.
BEARISH
Price
$718921.00
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
65%

Valuation

P/E Ratio
ARCC
9.6
BRK-A
15.45
Forward P/E
ARCC
9.28
BRK-A
22.3
P/B Ratio
ARCC
0.9
BRK-A
1.44
P/S Ratio
ARCC
4.2
BRK-A
2.78
EV/EBITDA
ARCC
--
BRK-A
7.21

Profitability

Gross Margin
ARCC
100.0%
BRK-A
26.15%
Operating Margin
ARCC
75.28%
BRK-A
32.96%
Profit Margin
ARCC
42.56%
BRK-A
18.03%
ROE
ARCC
9.39%
BRK-A
9.81%
ROA
ARCC
4.73%
BRK-A
5.11%

Growth

Revenue Growth
ARCC
4.5%
BRK-A
-0.7%
Earnings Growth
ARCC
-24.9%
BRK-A
-2.5%

Financial Health

Debt/Equity
ARCC
1.12
BRK-A
0.19
Current Ratio
ARCC
0.56
BRK-A
7.07
Quick Ratio
ARCC
0.46
BRK-A
6.62

Dividends

Dividend Yield
ARCC
10.75%
BRK-A
--
Payout Ratio
ARCC
103.23%
BRK-A
0.0%

AI Verdict

ARCC BEARISH

ARCC's Piotroski F-Score of 2/9 indicates severe financial distress, signaling weak operational and accounting health. The absence of an Altman Z-Score raises concern about potential bankruptcy risk, especially given a high debt/equity ratio of 1.12 and a current ratio of 0.56. Despite a high dividend yield of 10.75%, the payout ratio exceeds 100% (103.23%), making the dividend unsustainable in the long term. The stock trades at a P/E of 9.60, below the sector average, but this is misleading due to a sharp 24.9% YoY earnings decline and negative earnings growth. The technical trend is bearish, and insider activity is neutral, offering no confidence in leadership's conviction.

Strengths
High dividend yield of 10.75% attracts income-focused investors
P/E ratio of 9.60 is below the sector average of 30.37, suggesting potential undervaluation on a price multiple basis
Strong gross margin of 100.00% indicates high pricing power or low cost structure
Risks
Piotroski F-Score of 2/9 is extremely low, indicating poor financial health and high risk of deterioration
Payout ratio of 103.23% exceeds earnings, making the dividend unsustainable without capital raising or asset sales
Negative earnings growth of -24.9% YoY and -17.9% Q/Q signal deteriorating profitability
BRK-A BEARISH

BRK-A shows bearish fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Concerns include weak profitability or high valuation.

Strengths
Low debt with D/E ratio of 0.19
Risks
Weak financial trend (Piotroski F-Score: 3/9)
Declining revenue (-0.7%)

Compare Another Pair

ARCC vs BRK-A: Head-to-Head Comparison

This page compares Ares Capital Corporation (ARCC) and Berkshire Hathaway Inc. (BRK-A) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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