Why do BDCs benefit from rising interest rates?

Most BDC loans are floating-rate — the interest rate adjusts with benchmark rates (SOFR/LIBOR). When benchmark rates rise, the loans in the portfolio immediately earn higher interest income, flowing through to higher net investment income and higher dividends. This makes BDCs a popular income investment in rising rate environments.

What is the difference between first-lien and subordinated debt?

First-lien debt is the most senior loan in a company's capital structure — in the event of default, first-lien lenders are paid before all other creditors. Subordinated (junior) debt ranks behind first-lien and faces higher default loss severity but typically earns higher interest rates to compensate for the additional risk.

How do investors evaluate BDC dividend safety?

Investors examine BDCs' net investment income (NII) per share relative to the dividend per share — if NII exceeds the dividend, the distribution is well-covered; if NII is below the dividend, the BDC may be distributing return of capital or cutting dividends. NAV per share stability over time is also a key indicator of underwriting quality and portfolio health.

brimindinvest.com / compare / oak-vs-bdcLIVE

ORCC

Blue Owl Capital Corporation (Owl Rock) · Financials - Business Development Company

N/A

N/A this month

VERSUS

⟷

COMPARE

ARCC

Ares Capital Corporation · Financials - Business Development Company

$18.03

-0.43% this month

Scoreboard verdict

Across AI score, momentum, valuation, upside, operating margin

ORCC

0

ARCC

0

MIXED SETUP

Comparison scoreboard

MIXED SETUP

AI Score

ORCC N/A

ARCC N/A

1Y Return

ORCC N/A

ARCC -7.62%

Fwd P/E

ORCC N/A

ARCC 9.36

Target Up.

ORCC N/A

ARCC +15.19%

Op. Margin

ORCC N/A

ARCC N/A

Metrics last refreshed: 6/20/2026

Quick take

ORCC vs ARCC Stock Comparison: AI Score, Valuation, Performance and Upside

ORCC and ARCC are two of the largest publicly traded business development companies (BDCs), both providing direct private credit to middle-market U.S. companies. ARCC is the largest BDC with a long track record and broader loan portfolio including subordinated debt, while ORCC focuses on larger, first-lien-secured middle-market loans through Blue Owl's credit platform.

ORCC vs ARCC compares the two largest BDCs in the direct lending private credit market — both offering high dividend yields from floating-rate middle-market loans, with ARCC as the industry leader by scale and track record.

Live analysis · updated 6/20/2026

ORCC and ARCC are closely matched — they split the tracked metrics evenly.

Normalized 1Y performance

ORCC

ARCC

Not enough data to chart yet.

Recent returns

ORCC

ARCC

Analyst price targets & sentiment

ORCC

Price target data unavailable

N/A

ARCC · 13 analysts

STRONG BUYHOLDSTRONG SELL

Buy (1.7/5.0)

Price target range

analyst low$19.00
analyst high$23.00
analyst mean$20.77
current price$18.03

+15.2% upside to analyst mean

Who should consider this stock?

ORCC may suit investors who:

→Want first-lien-focused BDC exposure with credit quality emphasis from Owl Rock/Blue Owl's conservative underwriting approach
→Value the Blue Owl Capital institutional platform as a source of differentiated deal access in the competitive direct lending market
→Prefer a newer, focused first-lien portfolio over ARCC's more diversified but subordinated-debt-inclusive approach

ARCC may suit investors who:

→Want the largest, most established BDC with the longest track record of NAV stability through credit cycles
→Value ARCC's scale, portfolio diversification, and Ares Management's deep credit platform spanning multiple strategies
→See ARCC's proven management of subordinated debt and equity co-investments as adding return potential to its portfolio

Performance & AI score

Metric	ORCC	ARCC
AI score	N/A	N/A
AI rank	N/A	N/A
Latest close	N/A	$18.03
1M return	N/A	-0.43%
6M return	N/A	-5.92%
1Y return	N/A	-7.62%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

Period	ORCC	ARCC
1Y ago	N/A	$10.22K (+2.2%) started 2025-06-18
5Y ago	N/A	$27.66K (+176.6%) started 2021-06-18
10Y ago	N/A	$153.81K (+1438.1%) started 2016-06-20

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Metric	ORCC	ARCC
Market cap	N/A	$12.95B
Trailing P/E	N/A	11.06
Forward P/E	N/A	9.36
Price/Sales	4.38	4.20
EV/Revenue	N/A	9.31
Analyst target	N/A	$20.77
Target upside	N/A	+15.19%

Growth, profitability & risk

Metric	ORCC	ARCC
Revenue growth	N/A	4.20%
Earnings growth	N/A	-64.10%
EPS growth	N/A	-64.10%
FCF margin	N/A	+29.50%
Operating margin	N/A	N/A
Profit margin	N/A	37.30%
ROIC proxy	N/A	8.29%
Return on equity	N/A	8.29%
Dividend yield	N/A	10.31%
Beta	0.89	0.62
Debt/equity	N/A	112.91
Current ratio	N/A	0.38
Quick ratio	N/A	0.32

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

ORCC max drawdownN/A

ARCC max drawdown19.35%

ORCC max wkly dropN/A

ARCC max wkly drop6.80%

5Y risk snapshot

ORCC max drawdownN/A

ARCC max drawdown21.76%

ORCC max wkly dropN/A

ARCC max wkly drop15.16%

10Y risk snapshot

ORCC max drawdownN/A

ARCC max drawdown56.77%

ORCC max wkly dropN/A

ARCC max wkly drop41.83%

Performance metrics by period

Period	Metric	ORCC	ARCC
1Y	Growth	N/A	-7.62%
	CAGR	N/A	-7.63%
	Sharpe ratio	N/A	-0.58
	Max drawdown	N/A	19.35%
	Max daily drop	N/A	3.94%
	Max wkly drop	N/A	6.80%
5Y	Growth	N/A	+52.35%
	CAGR	N/A	+8.79%
	Sharpe ratio	N/A	0.30
	Max drawdown	N/A	21.76%
	Max daily drop	N/A	8.76%
	Max wkly drop	N/A	15.16%
10Y	Growth	N/A	+228.98%
	CAGR	N/A	+12.66%
	Sharpe ratio	N/A	0.42
	Max drawdown	N/A	56.77%
	Max daily drop	N/A	23.55%
	Max wkly drop	N/A	41.83%

Business comparison

Category	ORCC	ARCC
Company	Blue Owl Capital Corporation (Owl Rock)	Ares Capital Corporation
Sector	Financials - Business Development Company	Financials - Business Development Company
Industry	N/A	N/A
Core business	Blue Owl Capital Corporation (formerly Owl Rock Capital Corporation) is a large BDC providing direct loans to U.S. middle-market companies, focusing on first-lien secured loans to larger, established businesses, managed by Blue Owl Capital's credit platform.	Ares Capital Corporation is the largest publicly traded BDC by assets, providing senior secured, subordinated, and equity co-investment capital to U.S. middle-market companies across a wide range of industries, managed by Ares Management's credit team.
Investor focus	Investors track ORCC's net investment income (NII) per share, NAV per share stability, dividend coverage, portfolio credit quality (non-accrual rates), and interest rate sensitivity as a floating-rate lending portfolio.	Investors track ARCC's NII per share, NAV per share, dividend yield and coverage ratio, portfolio credit quality, and the performance of Ares' proprietary deal sourcing and underwriting capabilities.

ORCC strengths

→Focus on first-lien secured loans to larger middle-market companies provides stronger credit quality and better loss protection than junior debt BDCs
→Blue Owl Capital's institutional platform and relationships provide differentiated deal access in competitive direct lending market
→Floating rate loan portfolio benefits from higher interest rates, increasing NII as benchmark rates rise

ARCC strengths

→Largest BDC by assets provides superior scale for portfolio diversification, deal access, and lower relative funding costs
→Ares Management's deep credit platform with hundreds of investment professionals provides differentiated sourcing and underwriting
→Long track record of NAV stability through credit cycles demonstrates the quality of Ares' underwriting discipline

Risks to watch — ORCC

→Economic slowdown or recession increases the risk of portfolio company defaults, potentially impairing NAV
→BDC market competition has intensified significantly with hundreds of direct lenders competing for the same borrowers, compressing spreads
→Leverage on the BDC balance sheet amplifies both returns and risk — higher leverage increases income in good times but NAV volatility in stress scenarios

Risks to watch — ARCC

→Subordinated debt exposure in ARCC's portfolio is higher than some peers, creating more credit risk in a downturn than first-lien-only BDCs
→As the largest BDC, ARCC faces size constraints in smaller middle-market deals and must compete effectively for larger transactions
→BDC regulations limit leverage and require income distribution, constraining retained capital for compounding versus corporate balance sheets

Frequently asked questions

A BDC is a special U.S. regulatory structure (similar to a REIT) that enables public market investors to access private credit investments. BDCs lend to small and mid-size companies that don't have access to public bond markets, distributing at least 90% of income as dividends to qualify for pass-through tax treatment.

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+1.1%HOLD

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