MAIN vs. ARCC, BEN, SEIC, IVZ, AMG, CNS, GBDC, PSEC, VRTS, and OCSL
Should you be buying Main Street Capital stock or one of its competitors? The main competitors of Main Street Capital include Ares Capital (ARCC), Franklin Resources (BEN), SEI Investments (SEIC), Invesco (IVZ), Affiliated Managers Group (AMG), Cohen & Steers (CNS), Golub Capital BDC (GBDC), Prospect Capital (PSEC), Virtus Investment Partners (VRTS), and Oaktree Specialty Lending (OCSL). These companies are all part of the "asset management & custody banks" industry.
Main Street Capital (NYSE:MAIN) and Ares Capital (NASDAQ:ARCC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their community ranking, risk, media sentiment, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.
Ares Capital has higher revenue and earnings than Main Street Capital. Ares Capital is trading at a lower price-to-earnings ratio than Main Street Capital, indicating that it is currently the more affordable of the two stocks.
Main Street Capital has a net margin of 89.11% compared to Ares Capital's net margin of 62.77%. Main Street Capital's return on equity of 14.83% beat Ares Capital's return on equity.
In the previous week, Main Street Capital had 8 more articles in the media than Ares Capital. MarketBeat recorded 15 mentions for Main Street Capital and 7 mentions for Ares Capital. Ares Capital's average media sentiment score of 1.10 beat Main Street Capital's score of 0.40 indicating that Ares Capital is being referred to more favorably in the news media.
Main Street Capital has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Ares Capital has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
Ares Capital received 6 more outperform votes than Main Street Capital when rated by MarketBeat users. Likewise, 62.56% of users gave Ares Capital an outperform vote while only 56.90% of users gave Main Street Capital an outperform vote.
Main Street Capital currently has a consensus target price of $47.67, indicating a potential downside of 2.72%. Ares Capital has a consensus target price of $21.50, indicating a potential downside of 0.32%. Given Ares Capital's stronger consensus rating and higher possible upside, analysts plainly believe Ares Capital is more favorable than Main Street Capital.
20.3% of Main Street Capital shares are held by institutional investors. Comparatively, 27.4% of Ares Capital shares are held by institutional investors. 4.0% of Main Street Capital shares are held by company insiders. Comparatively, 0.6% of Ares Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Main Street Capital pays an annual dividend of $2.88 per share and has a dividend yield of 5.9%. Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 8.9%. Main Street Capital pays out 52.6% of its earnings in the form of a dividend. Ares Capital pays out 65.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary
Main Street Capital and Ares Capital tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MAIN and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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