HTGC vs. ARCC
HTGC (Hercules Capital, Inc.) and ARCC (Ares Capital Corporation) are both stocks. Both operate in the Asset Management industry within the Financial Services sector. Over the past 10 years, HTGC returned 13.51%/yr vs 12.43%/yr for ARCC. A 0.52 correlation means they provide meaningful diversification when combined.
Performance
HTGC vs. ARCC - Performance Comparison
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Returns By Period
In the year-to-date period, HTGC achieves a -14.31% return, which is significantly lower than ARCC's -7.09% return. Over the past 10 years, HTGC has outperformed ARCC with an annualized return of 13.51%, while ARCC has yielded a comparatively lower 12.43% annualized return.
HTGC
- 1D
- -1.68%
- 1M
- -0.72%
- YTD
- -14.31%
- 6M
- -12.31%
- 1Y
- -5.78%
- 3Y*
- 14.02%
- 5Y*
- 8.78%
- 10Y*
- 13.51%
ARCC
- 1D
- -1.05%
- 1M
- -1.58%
- YTD
- -7.09%
- 6M
- -5.60%
- 1Y
- -8.51%
- 3Y*
- 9.49%
- 5Y*
- 8.23%
- 10Y*
- 12.43%
HTGC vs. ARCC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HTGC Hercules Capital, Inc. | -14.31% | 3.54% | 33.33% | 42.91% | -10.42% | 26.50% | 14.49% | 39.86% | -6.86% | 1.86% |
ARCC Ares Capital Corporation | -7.09% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | 0.86% | 31.30% | 8.81% | 4.50% |
Correlation
The correlation between HTGC and ARCC is 0.70, 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 | 0.70 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.67 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.68 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Jun 9, 2005 | 0.52 |
The correlation between HTGC and ARCC shifts across timeframes, from 0.52 (all time) to 0.70 (1 year), reflecting how their relationship changes across market environments.
Fundamentals
HTGC:
$3.00B
ARCC:
$12.81B
HTGC:
$1.49
ARCC:
$1.63
HTGC:
10.22
ARCC:
10.94
HTGC:
0.31
ARCC:
1.64
HTGC:
5.12
ARCC:
4.78
HTGC:
1.35
ARCC:
0.91
HTGC:
$578.18M
ARCC:
$2.63B
HTGC:
$510.74M
ARCC:
$1.86B
HTGC:
$380.44M
ARCC:
$2.05B
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Return for Risk
HTGC vs. ARCC — Risk / Return Rank
HTGC
ARCC
HTGC vs. ARCC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Hercules Capital, Inc. (HTGC) and Ares Capital Corporation (ARCC). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| HTGC | ARCC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.21 | ||
| Sortino ratioReturn per unit of downside risk | +0.34 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 0.94 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | -0.23 | -0.44 | +0.21 |
| Martin ratioReturn relative to average drawdown | -0.52 | -0.79 | +0.27 |
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Drawdowns
HTGC vs. ARCC - Drawdown Comparison
The maximum HTGC drawdown since its inception was -68.21%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for HTGC and ARCC.
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Drawdown Indicators
| HTGC | ARCC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -68.21% | -79.36% | +11.15% |
Max Drawdown (1Y)Largest decline over 1 year | -24.74% | -19.35% | -5.39% |
Max Drawdown (3Y)Largest decline over 3 years | -27.97% | -19.35% | -8.62% |
Max Drawdown (5Y)Largest decline over 5 years | -36.11% | -21.76% | -14.35% |
Max Drawdown (10Y)Largest decline over 10 years | -57.54% | -56.77% | -0.77% |
Current DrawdownCurrent decline from peak | -18.98% | -15.44% | -3.54% |
Average DrawdownAverage peak-to-trough decline | -10.87% | -9.11% | -1.76% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 11.15% | 10.85% | +0.30% |
Volatility
HTGC vs. ARCC - Volatility Comparison
Hercules Capital, Inc. (HTGC) has a higher volatility of 5.98% compared to Ares Capital Corporation (ARCC) at 4.64%. This indicates that HTGC's price experiences larger fluctuations and is considered to be riskier than ARCC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HTGC | ARCC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.98% | 4.64% | +1.34% |
Volatility (6M)Calculated over the trailing 6-month period | 20.17% | 15.11% | +5.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 23.43% | 18.68% | +4.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 25.77% | 19.95% | +5.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.87% | 25.60% | +2.27% |
Dividends
HTGC vs. ARCC - Dividend Comparison
HTGC's dividend yield for the trailing twelve months is around 11.88%, more than ARCC's 10.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 10.76% | 9.49% | 8.77% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% |
HTGC Hercules Capital, Inc. | 11.88% | 9.99% | 9.56% | 11.40% | 13.77% | 9.76% | 9.02% | 9.49% | 11.40% | 9.45% | 8.79% | 10.17% |
Financials
HTGC vs. ARCC - Financials Comparison
This section allows you to compare key financial metrics between Hercules Capital, Inc. and Ares Capital Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
HTGC vs. ARCC - Profitability Comparison
HTGC - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Hercules Capital, Inc. reported a gross profit of 106.20M and revenue of 123.49M. Therefore, the gross margin over that period was 86.0%.
ARCC - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Ares Capital Corporation reported a gross profit of 550.00M and revenue of 763.00M. Therefore, the gross margin over that period was 72.1%.
HTGC - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Hercules Capital, Inc. reported an operating income of 65.43M and revenue of 123.49M, resulting in an operating margin of 53.0%.
ARCC - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Ares Capital Corporation reported an operating income of 404.00M and revenue of 763.00M, resulting in an operating margin of 53.0%.
HTGC - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Hercules Capital, Inc. reported a net income of 0.00 and revenue of 123.49M, resulting in a net margin of 0.0%.
ARCC - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Ares Capital Corporation reported a net income of 92.00M and revenue of 763.00M, resulting in a net margin of 12.1%.
Frequently Asked Questions
HTGC and ARCC have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HTGC has higher volatility (5.98%) compared to ARCC (4.64%). In terms of maximum drawdown, HTGC dropped -68.21% vs ARCC's -79.36%.
HTGC currently has the higher Sharpe Ratio (-0.25 vs -0.46), 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.
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