NREF vs. ARCC
Compare and contrast key facts about NexPoint Real Estate Finance, Inc. (NREF) and Ares Capital Corporation (ARCC).
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: NREF or ARCC.
Key characteristics
| NREF | ARCC | |
|---|---|---|
| YTD Return | -7.12% | 8.75% |
| 1Y Return | 18.12% | 26.27% |
| 3Y Return (Ann) | 1.22% | 14.01% |
| Sharpe Ratio | 0.55 | 2.31 |
| Daily Std Dev | 35.65% | 11.88% |
| Max Drawdown | -66.11% | -79.36% |
| Current Drawdown | -27.67% | 0.00% |
Fundamentals
| NREF | ARCC | |
|---|---|---|
| Market Cap | $302.35M | $12.82B |
| EPS | $0.60 | $2.93 |
| PE Ratio | 22.27 | 7.20 |
| Revenue (TTM) | $23.48M | $2.70B |
| Gross Profit (TTM) | $92.14M | $2.10B |
Correlation
The correlation between NREF and ARCC is 0.35, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
NREF vs. ARCC - Performance Comparison
In the year-to-date period, NREF achieves a -7.12% return, which is significantly lower than ARCC's 8.75% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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Risk-Adjusted Performance
NREF vs. ARCC - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for NexPoint Real Estate Finance, Inc. (NREF) 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.
Dividends
NREF vs. ARCC - Dividend Comparison
NREF's dividend yield for the trailing twelve months is around 18.08%, more than ARCC's 9.02% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NREF NexPoint Real Estate Finance, Inc. | 18.08% | 17.40% | 12.59% | 9.87% | 8.56% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
ARCC Ares Capital Corporation | 9.02% | 9.59% | 10.10% | 7.60% | 9.41% | 8.94% | 9.78% | 9.57% | 9.12% | 10.90% | 9.93% | 8.67% |
Drawdowns
NREF vs. ARCC - Drawdown Comparison
The maximum NREF drawdown since its inception was -66.11%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for NREF and ARCC. For additional features, visit the drawdowns tool.
Volatility
NREF vs. ARCC - Volatility Comparison
NexPoint Real Estate Finance, Inc. (NREF) has a higher volatility of 6.57% compared to Ares Capital Corporation (ARCC) at 3.24%. This indicates that NREF'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.
Financials
NREF vs. ARCC - Financials Comparison
This section allows you to compare key financial metrics between NexPoint Real Estate Finance, 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