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NREF vs. ARCC
Performance
Return for Risk
Dividends
Drawdowns
Volatility
Financials

Performance

NREF vs. ARCC - Performance Comparison

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

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NREF vs. ARCC - Yearly Performance Comparison


2026 (YTD)202520242023202220212020
NREF
NexPoint Real Estate Finance, Inc.
-0.84%2.28%13.51%17.36%-8.90%27.81%-2.81%
ARCC
Ares Capital Corporation
-8.49%1.07%19.78%20.03%-3.84%36.14%-2.18%

Fundamentals

Market Cap

NREF:

$656.92M

ARCC:

$12.60B

EPS

NREF:

$2.43

ARCC:

$1.64

PE Ratio

NREF:

5.55

ARCC:

11.00

PEG Ratio

NREF:

0.05

ARCC:

1.65

PS Ratio

NREF:

4.32

ARCC:

6.71

PB Ratio

NREF:

1.69

ARCC:

0.88

Total Revenue (TTM)

NREF:

$137.38M

ARCC:

$1.88B

Gross Profit (TTM)

NREF:

$128.63M

ARCC:

$1.18B

EBITDA (TTM)

NREF:

$171.37M

ARCC:

$1.08B

Returns By Period

In the year-to-date period, NREF achieves a -0.84% return, which is significantly higher than ARCC's -8.49% return.


NREF

1D
0.67%
1M
-3.77%
YTD
-0.84%
6M
1.86%
1Y
0.85%
3Y*
9.52%
5Y*
5.49%
10Y*

ARCC

1D
1.58%
1M
-0.58%
YTD
-8.49%
6M
-7.16%
1Y
-10.69%
3Y*
9.35%
5Y*
8.75%
10Y*
11.92%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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Return for Risk

NREF vs. ARCC — Risk / Return Rank

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

NREF
NREF Risk / Return Rank: 4040
Overall Rank
NREF Sharpe Ratio Rank: 4242
Sharpe Ratio Rank
NREF Sortino Ratio Rank: 3636
Sortino Ratio Rank
NREF Omega Ratio Rank: 3535
Omega Ratio Rank
NREF Calmar Ratio Rank: 4444
Calmar Ratio Rank
NREF Martin Ratio Rank: 4444
Martin Ratio Rank

ARCC
ARCC Risk / Return Rank: 2121
Overall Rank
ARCC Sharpe Ratio Rank: 2222
Sharpe Ratio Rank
ARCC Sortino Ratio Rank: 2020
Sortino Ratio Rank
ARCC Omega Ratio Rank: 2020
Omega Ratio Rank
ARCC Calmar Ratio Rank: 2525
Calmar Ratio Rank
ARCC Martin Ratio Rank: 2222
Martin Ratio Rank
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.

NREF vs. ARCC - Risk-Adjusted Trends 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.


NREFARCCDifference

Sharpe ratio

Return per unit of total volatility

0.03

-0.46

+0.49

Sortino ratio

Return per unit of downside risk

0.24

-0.51

+0.74

Omega ratio

Gain probability vs. loss probability

1.03

0.93

+0.10

Calmar ratio

Return relative to maximum drawdown

0.09

-0.54

+0.63

Martin ratio

Return relative to average drawdown

0.23

-1.12

+1.35

NREF vs. ARCC - Sharpe Ratio Comparison

The current NREF Sharpe Ratio is 0.03, which is higher than the ARCC Sharpe Ratio of -0.46. The chart below compares the historical Sharpe Ratios of NREF and ARCC, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.


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Sharpe Ratios by Period


NREFARCCDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.03

-0.46

+0.49

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.17

0.44

-0.28

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.47

Sharpe Ratio (All Time)

Calculated using the full available price history

0.16

0.37

-0.22

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.


Dividends

NREF vs. ARCC - Dividend Comparison

NREF's dividend yield for the trailing twelve months is around 14.85%, more than ARCC's 10.65% yield.


TTM20252024202320222021202020192018201720162015
NREF
NexPoint Real Estate Finance, Inc.
14.85%14.20%12.75%17.40%12.59%9.87%8.59%0.00%0.00%0.00%0.00%0.00%
ARCC
Ares Capital Corporation
10.65%9.49%8.77%9.59%10.12%7.65%9.47%9.01%9.88%9.67%9.22%11.02%

Drawdowns

NREF vs. ARCC - Drawdown Comparison

The maximum NREF drawdown since its inception was -66.09%, 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.


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Drawdown Indicators


NREFARCCDifference

Max Drawdown

Largest peak-to-trough decline

-66.09%

-79.36%

+13.27%

Max Drawdown (1Y)

Largest decline over 1 year

-14.80%

-19.35%

+4.55%

Max Drawdown (5Y)

Largest decline over 5 years

-44.78%

-21.76%

-23.02%

Max Drawdown (10Y)

Largest decline over 10 years

-56.77%

Current Drawdown

Current decline from peak

-10.35%

-16.71%

+6.36%

Average Drawdown

Average peak-to-trough decline

-17.20%

-9.07%

-8.13%

Ulcer Index

Depth and duration of drawdowns from previous peaks

6.68%

9.33%

-2.65%

Volatility

NREF vs. ARCC - Volatility Comparison

NexPoint Real Estate Finance, Inc. (NREF) has a higher volatility of 8.66% compared to Ares Capital Corporation (ARCC) at 6.61%. 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.


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Volatility by Period


NREFARCCDifference

Volatility (1M)

Calculated over the trailing 1-month period

8.66%

6.61%

+2.05%

Volatility (6M)

Calculated over the trailing 6-month period

17.31%

15.16%

+2.15%

Volatility (1Y)

Calculated over the trailing 1-year period

28.59%

23.48%

+5.11%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

33.24%

19.88%

+13.36%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

46.26%

25.53%

+20.73%

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.


Quarterly
Annual

Total Revenue: Total amount of money received from sales and other business activities


0.00200.00M400.00M600.00MAprilJulyOctober2022AprilJulyOctober2023AprilJulyOctober2024AprilJulyOctober2025AprilJulyOctober
44.95M
202.00M
(NREF) Total Revenue
(ARCC) Total Revenue
Values in USD except per share items

NREF vs. ARCC - Profitability Comparison

The chart below illustrates the profitability comparison between NexPoint Real Estate Finance, Inc. and Ares Capital Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

Gross Margin
Operating Margin
Net Margin
Quarterly
Annual

-20.0%0.0%20.0%40.0%60.0%80.0%100.0%AprilJulyOctober2022AprilJulyOctober2023AprilJulyOctober2024AprilJulyOctober2025AprilJulyOctober
100.0%
21.5%
Portfolio components
NREF - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, NexPoint Real Estate Finance, Inc. reported a gross profit of 44.95M and revenue of 44.95M. Therefore, the gross margin over that period was 100.0%.

ARCC - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Ares Capital Corporation reported a gross profit of 43.48M and revenue of 202.00M. Therefore, the gross margin over that period was 21.5%.

NREF - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, NexPoint Real Estate Finance, Inc. reported an operating income of -20.55M and revenue of 44.95M, resulting in an operating margin of -45.7%.

ARCC - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Ares Capital Corporation reported an operating income of 26.85M and revenue of 202.00M, resulting in an operating margin of 13.3%.

NREF - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, NexPoint Real Estate Finance, Inc. reported a net income of 23.12M and revenue of 44.95M, resulting in a net margin of 51.5%.

ARCC - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Ares Capital Corporation reported a net income of 142.36M and revenue of 202.00M, resulting in a net margin of 70.5%.