Head to Head Comparison: Ares Capital (NASDAQ:ARCC) and Advanced Medical Isotope (OTCMKTS:RDGL)

Advanced Medical Isotope (OTCMKTS:RDGL) and Ares Capital (NASDAQ:ARCC) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Volatility and Risk

Advanced Medical Isotope has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Ares Capital has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Valuation & Earnings

This table compares Advanced Medical Isotope and Ares Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advanced Medical Isotope	$30,000.00	1,244.27	-$2.91 million	N/A	N/A
Ares Capital	$1.57 billion	9.20	$1.52 billion	$2.00	10.10

Ares Capital has higher revenue and earnings than Advanced Medical Isotope.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Advanced Medical Isotope and Ares Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Medical Isotope	0	0	0	0	0.00
Ares Capital	0	2	8	0	2.80

Ares Capital has a consensus target price of $22.25, suggesting a potential upside of 10.15%. Given Ares Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Ares Capital is more favorable than Advanced Medical Isotope.

Insider and Institutional Ownership

27.4% of Ares Capital shares are owned by institutional investors. 18.5% of Advanced Medical Isotope shares are owned by insiders. Comparatively, 0.5% of Ares Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Advanced Medical Isotope and Ares Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advanced Medical Isotope	-6,401.92%	N/A	-139.36%
Ares Capital	45.16%	10.08%	4.80%

Summary

Ares Capital beats Advanced Medical Isotope on 9 of the 12 factors compared between the two stocks.

About Advanced Medical Isotope

Vivos Inc., a radiation oncology medical device company, develops brachytherapy devices for the treatment of non-resectable tumors in the United States. It develops yttrium-90 based RadioGel device, an injectable particle-gel for brachytherapy radiation treatment of cancerous tumors in people and animals; and IsoPet for the treatment of solid tumors in animals. The company was formerly known as Advanced Medical Isotope Corporation and changed its name to Vivos Inc. in December 2017. Vivos Inc. was incorporated in 1994 and is headquartered in Richland, Washington.

About Ares Capital

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.