Ares Capital vs Ryan Specialty
This page compares Ares Capital Corporation and Ryan Specialty Holdings Inc, exploring their business models, financial performance, and market context. It presents neutral, accessible explanations of how each company operates, competes, and adapts to industry trends. Educational content, not financial advice.
This page compares Ares Capital Corporation and Ryan Specialty Holdings Inc, exploring their business models, financial performance, and market context. It presents neutral, accessible explanations of...
Which Baskets Do They Appear In?
Wall Street's Private Credit Push
This carefully selected group of stocks represents companies positioned to benefit from the major shift toward private credit on Wall Street. Professional investors have identified these Business Development Companies as potential winners from JPMorgan's strategic move into alternative lending, which could drive new partnerships and increased deal flow.
Published: July 15, 2025
Explore BasketWhich Baskets Do They Appear In?
Wall Street's Private Credit Push
This carefully selected group of stocks represents companies positioned to benefit from the major shift toward private credit on Wall Street. Professional investors have identified these Business Development Companies as potential winners from JPMorgan's strategic move into alternative lending, which could drive new partnerships and increased deal flow.
Published: July 15, 2025
Explore BasketInvestment Analysis
Ares Capital
ARCC
Pros
- Ares Capital is the largest publicly traded Business Development Company by market capitalization, providing scale advantages and market leadership.
- The company has delivered a 13% annualized total shareholder return since its 2004 IPO, reflecting strong historic performance.
- It generates steady income with a high dividend yield around 9.4%, supported by investments in senior secured loans and diversified debt/equity assets.
Considerations
- Returns on assets and equity are moderate at about 4.9% and 10.3% respectively, indicating modest profitability.
- The share price has shown modest volatility with a year-to-date decline and a current valuation near book value, suggesting limited price appreciation potential.
- Its exposure to middle-market loans introduces credit risk sensitive to economic cycles and interest rate changes, posing potential downside risks.
Ryan Specialty
RYAN
Pros
- Ryan Specialty Holdings operates in a growing specialty insurance services segment across multiple international regions providing revenue diversification.
- The company recently issued $500 million in senior secured notes, indicating access to capital for potential growth investments.
- Forward price-to-earnings ratio of 24.4 suggests market expectations for earnings improvement compared to its very high trailing P/E of 257.
Considerations
- Ryan Specialty reported a net loss in the trailing twelve months with an EPS of -0.10, highlighting current profitability challenges.
- Its stock trades with a very high P/E ratio, indicating elevated valuation risk if growth or earnings improvement disappoints.
- The insurance specialty sector can be cyclical and exposed to regulatory and claims volatility, introducing uncertainty around earnings stability.
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