ARCC vs. NMFC

Last updated Jun 9, 2026

ARCC (Ares Capital Corporation) and NMFC (New Mountain Finance Corporation) are both stocks. Both operate in the Asset Management industry within the Financial Services sector. Over the past 10 years, ARCC returned 12.83%/yr vs 6.08%/yr for NMFC. A 0.52 correlation means they provide meaningful diversification when combined.

Performance

ARCC vs. NMFC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Ares Capital Corporation (ARCC) and New Mountain Finance Corporation (NMFC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARCC achieves a -4.69% return, which is significantly higher than NMFC's -11.79% return. Over the past 10 years, ARCC has outperformed NMFC with an annualized return of 12.83%, while NMFC has yielded a comparatively lower 6.08% annualized return.

ARCC

• 1D: -0.11%
• 1M: -1.26%
• YTD: -4.69%
• 6M: -6.11%
• 1Y: -7.10%
• 3Y*: 9.21%
• 5Y*: 8.47%
• 10Y*: 12.83%

NMFC

• 1D: -0.51%
• 1M: -5.92%
• YTD: -11.79%
• 6M: -13.53%
• 1Y: -16.84%
• 3Y*: -3.49%
• 5Y*: -0.05%
• 10Y*: 6.08%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ARCC vs. NMFC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ARCC Ares Capital Corporation	-4.69%	1.07%	19.78%	20.03%	-3.84%	36.14%	0.86%	31.30%	8.81%	4.50%
NMFC New Mountain Finance Corporation	-11.79%	-7.17%	-0.95%	15.47%	-0.55%	31.94%	-7.13%	20.64%	2.78%	5.71%

Correlation

The correlation between ARCC and NMFC is 0.68, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since May 23, 2011	0.52

The correlation between ARCC and NMFC shifts across timeframes, from 0.52 (all time) to 0.68 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

EPS ARCC : $1.63 NMFC : $328.53
PE Ratio ARCC : 11.51 NMFC : 0.02
PS Ratio ARCC : 5.03 NMFC : 2.30
Total Revenue (TTM) ARCC : $2.63B NMFC : $315.55M
Gross Profit (TTM) ARCC : $1.86B NMFC : $203.95M
EBITDA (TTM) ARCC : $2.05B NMFC : $106.53M

Return for Risk

ARCC vs. NMFC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ARCC

ARCC Risk / Return Rank: 26
ARCC Sharpe Ratio Rank: 25
ARCC Sortino Ratio Rank: 22
ARCC Omega Ratio Rank: 23
ARCC Calmar Ratio Rank: 30
ARCC Martin Ratio Rank: 30

NMFC

NMFC Risk / Return Rank: 13
NMFC Sharpe Ratio Rank: 11
NMFC Sortino Ratio Rank: 12
NMFC Omega Ratio Rank: 14
NMFC Calmar Ratio Rank: 17
NMFC Martin Ratio Rank: 10

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ARCC vs. NMFC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Ares Capital Corporation (ARCC) and New Mountain Finance Corporation (NMFC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ARCC	NMFC	Difference
Sharpe ratio: Return per unit of total volatility	-0.39	-0.75	+0.36
Sortino ratio: Return per unit of downside risk	-0.42	-0.98	+0.56
Omega ratio: Gain probability vs. loss probability	0.95	0.89	+0.06
Calmar ratio: Return relative to maximum drawdown	-0.37	-0.69	+0.32
Martin ratio: Return relative to average drawdown	-0.67	-1.35	+0.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ARCC vs. NMFC - Sharpe Ratio Comparison

The current ARCC Sharpe Ratio is -0.39, which is higher than the NMFC Sharpe Ratio of -0.75. The chart below compares the historical Sharpe Ratios of ARCC and NMFC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ARCC	NMFC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.39	-0.75	+0.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.43	-0.00	+0.43
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	0.24	+0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.37	0.31	+0.07

Drawdowns

ARCC vs. NMFC - Drawdown Comparison

The maximum ARCC drawdown since its inception was -79.36%, which is greater than NMFC's maximum drawdown of -64.16%. Use the drawdown chart below to compare losses from any high point for ARCC and NMFC.

Drawdown Indicators

	ARCC	NMFC	Difference
Max Drawdown Largest peak-to-trough decline	-79.36%	-64.16%	-15.20%
Max Drawdown (1Y) Largest decline over 1 year	-19.35%	-24.56%	+5.21%
Max Drawdown (3Y) Largest decline over 3 years	-19.35%	-27.77%	+8.42%
Max Drawdown (5Y) Largest decline over 5 years	-21.76%	-27.77%	+6.01%
Max Drawdown (10Y) Largest decline over 10 years	-56.77%	-64.16%	+7.39%
Current Drawdown Current decline from peak	-13.24%	-23.29%	+10.05%
Average Drawdown Average peak-to-trough decline	-9.10%	-5.45%	-3.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.58%	12.48%	-1.90%

Volatility

ARCC vs. NMFC - Volatility Comparison

The current volatility for Ares Capital Corporation (ARCC) is 3.82%, while New Mountain Finance Corporation (NMFC) has a volatility of 6.73%. This indicates that ARCC experiences smaller price fluctuations and is considered to be less risky than NMFC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARCC	NMFC	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.82%	6.73%	-2.91%
Volatility (6M) Calculated over the trailing 6-month period	14.73%	18.23%	-3.50%
Volatility (1Y) Calculated over the trailing 1-year period	18.45%	22.67%	-4.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.97%	18.54%	+1.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.59%	25.91%	-0.32%

Dividends

ARCC vs. NMFC - Dividend Comparison

ARCC's dividend yield for the trailing twelve months is around 10.23%, less than NMFC's 16.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARCC Ares Capital Corporation	10.23%	9.49%	8.77%	9.59%	10.12%	7.65%	9.47%	9.01%	9.88%	9.67%	9.22%	11.02%
NMFC New Mountain Finance Corporation	16.43%	13.90%	12.17%	11.40%	9.86%	8.76%	10.92%	9.90%	10.81%	10.04%	9.65%	10.45%

Financials

Frequently Asked Questions

Can I hold both ARCC and NMFC in my portfolio?

ARCC and NMFC have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARCC or NMFC?

NMFC has higher volatility (6.73%) compared to ARCC (3.82%). In terms of maximum drawdown, ARCC dropped -79.36% vs NMFC's -64.16%.

Which has better risk-adjusted returns?

ARCC currently has the higher Sharpe Ratio (-0.39 vs -0.75), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.