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Ares Capital's NAV, Dividend, And Valuation Vs. 13 BDC Peers - Part 1 (Post Q2 2019 Earnings)

Published Tue, 20 Aug 2019 18:25:51 -0400 on Seeking Alpha

Focus of Article: The focus of PART 1 of this article is to analyze Ares Capital Corp.'s (ARCC) recent results and compare a handful of the company's metrics to thirteen business development company ("BDC") peers. This analysis will show past and current data with supporting documentation within two detailed tables. Table 1 will compare ARCC's recent net asset value ("NAV"), economic return, net investment income ("NII"), stock price to annualized NII ratio, and percentage of total investment income attributable to capitalized payment-in-kind ("PIK") income to the thirteen BDC peers. Table 1 will also provide a premium (discount) to NAV analysis using stock prices as of 8/16/2019. Table 2 will compare ARCC's investment portfolio (including several additional metrics) as of 3/31/2019 and 6/30/2019 to the thirteen BDC peers.
I am writing this two-part article due to the continued requests that such an analysis be specifically performed on ARCC and some of the company's BDC peers at periodic intervals. These BDC peers include Apollo Investment Corp. (OTC:AINV), FS KKR Capital Corp. (FSK), Gladstone Investment Corp. (GAIN), Golub Capital BDC Inc. (Nasdaq: GBDC), Main Street Capital Corp. (MAIN), Medley Capital Corp. (MCC), NEWTEK Business Services Corp. (NEWT), Oaktree Strategic Income Corp. (OCSI), Oaktree Specialty Lending Corp. (OCSL), PennantPark Floating Rate Capital Ltd. (PFLT), Solar Capital, Ltd. (SLRC), Blackrock TCP Capital Corp. (TCPC), and TPG Specialty Lending Corp.... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
PROSPECT CAPITAL 6.71   16.8 0.40 0.72 10.76
APOLLO INVESTMENT 16.78   14.2 1.18 1.80 10.73
TCP CAPITAL 13.75   29.3 0.47 1.44 10.48
OAKTREE SPECIALTY LENDING 4.90   0.0 -1.39 0.50 10.02
PENNANTPARK FLOATING RATE CAPITAL 11.68   30.0 0.39 1.14 9.81
NEWTEK BUSINESS SERVICES 22.91   0.0 0.00 2.32 8.09
SOLAR CAPITAL 20.87   12.4 1.69 1.64 7.93
OAKTREE STRATEGIC INCOME 8.10   19.8 0.41 0.62 7.51
GLADSTONE INVESTMENT 12.34   7.4 1.67 0.82 6.73
MEDLEY CAPITAL 2.61   0.0 -1.62 0.15 5.81
MAIN STREET CAPITAL 43.18   16.8 2.57 2.46 5.69
BLACKROCK 434.75   16.5 26.34 13.20 3.08