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ALLY vs. ARES: Ally Financial vs. Ares Management Stock Comparison

How do Ally Financial (ALLY) and Ares Management (ARES) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Ally Financial (ALLY) and Ares Management (ARES) both fall under the Financial Services industry group, but ALLY is classified in Consumer Finance while ARES is classified in Capital Markets.

Company profile comparison for Ally Financial (ALLY) and Ares Management (ARES)
Profile ItemALLYARES
NameAlly Financial Inc.Ares Management Corp. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryConsumer FinanceCapital Markets
GICS Sub-IndustryConsumer FinanceAsset Management & Custody Banks
Market Capitalization11.45 billion USD44.45 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 28, 2014May 2, 2014
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ALLY
ARES
GSPC
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Ally Financial (ALLY) vs. Ares Management (ARES), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Ally Financial (ALLY) and Ares Management (ARES). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Ally Financial (ALLY) and Ares Management (ARES). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Ally Financial (ALLY) and Ares Management (ARES)
MetricALLYARES
Total Return (1Y)1.76%-5.55%
Total Return (3Y, Annualized)18.37%13.18%
Total Return (5Y, Annualized)-1.28%13.38%

Risk Profile

Drawdown History

ALLY
ARES
GSPC
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Ally Financial (ALLY) vs. Ares Management (ARES), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Ally Financial (ALLY) and Ares Management (ARES). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Ally Financial (ALLY) and Ares Management (ARES)
MetricALLYARES
Volatility (1Y, Annualized)28.62%44.09%
Beta (5Y)1.151.45
Max Drawdown (5Y)-55.89%-49.97%
Avg. Volume (3M)3.74M2.20M

Risk-Adjusted Performance

Risk-Return Positioning

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ALLY and ARES are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Ally Financial (ALLY) and Ares Management (ARES)
MetricALLYARES
Sharpe Ratio (1Y)-0.09-0.22
Sortino Ratio (1Y)-0.13-0.31

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Ally Financial (ALLY) earns 9.90% on shareholders’ equity, ranked against its industry; Ares Management (ARES) has no ROE this period.

ALLY

Financial Services industry group

9.90%

Max
44.78%
Q3
21.85%
Median
12.91%
ALLY
9.90%
Q1
4.48%
Min
-18.71%

ARES

Financial Services industry group

--

Max
44.78%
Q3
21.85%
Median
12.91%
Q1
4.48%
Min
-18.71%
ARES
--
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Ally Financial (ALLY) vs. Ares Management (ARES): ARES does not report ROE, so it has no value marker; ALLY is benchmarked against the Financial Services industry group.

Net Margin (TTM)

Both Ally Financial (ALLY) at 18.62% and Ares Management (ARES) at 8.69% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

ALLY

Financial Services industry group

18.62%

Max
62.84%
Q3
28.05%
ALLY
18.62%
Median
15.36%
Q1
4.82%
Min
-28.52%

ARES

Financial Services industry group

8.69%

Max
62.84%
Q3
28.05%
Median
15.36%
ARES
8.69%
Q1
4.82%
Min
-28.52%
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Ally Financial (ALLY) vs. Ares Management (ARES): A comparison of their net margin against the Financial Services industry group benchmark.

Operating Margin (TTM)

Ally Financial (ALLY) at 27.31% runs core operations around its industry’s norm, while Ares Management (ARES) at 2.89% operates in the bottom quartile.

ALLY

Financial Services industry group

27.31%

Max
107.33%
Q3
55.90%
Median
30.09%
ALLY
27.31%
Q1
14.60%
Min
-44.34%

ARES

Financial Services industry group

2.89%

Max
107.33%
Q3
55.90%
Median
30.09%
Q1
14.60%
ARES
2.89%
Min
-44.34%
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Ally Financial (ALLY) vs. Ares Management (ARES): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Ally Financial (ALLY) and Ares Management (ARES)
MetricALLYARES
ROE (TTM)9.90%--
ROA (TTM)0.75%--
Net Margin (TTM)18.62%8.69%
Operating Margin (TTM)27.31%2.89%
Gross Margin (TTM)----

Growth

Revenue Growth

Ares Management (ARES) at 44.19% sits in the top revenue growth quartile, while Ally Financial (ALLY) at -1.43% is in the bottom quartile, showing a clear gap in revenue momentum.

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Ally Financial (ALLY) vs. Ares Management (ARES): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Ally Financial (ALLY) at 31.67% and Ares Management (ARES) at -16.67% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Ally Financial (ALLY) vs. Ares Management (ARES): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Ally Financial (ALLY) and Ares Management (ARES)
MetricALLYARES
Revenue Growth (YoY)-1.43%44.19%
Revenue Growth (3Y CAGR)-1.73%22.39%
EPS Growth (YoY)31.67%-16.67%
EPS Growth (3Y CAGR)-22.19%25.02%

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Ally Financial (ALLY) in Financial Services and Ares Management (ARES) in Financial Services both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for both: Ally Financial (ALLY) in Financial Services and Ares Management (ARES) in Financial Services run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Financial strength metrics for Ally Financial (ALLY) and Ares Management (ARES)
MetricALLYARES
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Both Ally Financial (ALLY) at 3.09% and Ares Management (ARES) at 3.87% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

ALLY

Financial Services industry group

3.09%

Max
9.77%
Q3
3.92%
ALLY
3.09%
Median
1.09%
Q1
0.00%
Min
0.00%

ARES

Financial Services industry group

3.87%

Max
9.77%
Q3
3.92%
ARES
3.87%
Median
1.09%
Q1
0.00%
Min
0.00%
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Ally Financial (ALLY) vs. Ares Management (ARES): A comparison of their dividend yield against the Financial Services industry group benchmark.

Dividend Payout Ratio (TTM)

Ares Management (ARES) reports payout ratio above 100% at 423.77%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Ally Financial (ALLY) reports 27.46%, ranking against industry peers normally.

ALLY

Financial Services industry group

27.46%

Max
241.07%
Q3
97.36%
ALLY
27.46%
Median
25.77%
Q1
0.00%
Min
0.00%

ARES

Financial Services industry group

423.77%

ARES
423.77%
Max
241.07%
Q3
97.36%
Median
25.77%
Q1
0.00%
Min
0.00%
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Ally Financial (ALLY) vs. Ares Management (ARES): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for Ally Financial (ALLY) and Ares Management (ARES)
MetricALLYARES
Dividend Yield (TTM)3.09%3.87%
Dividend Payout Ratio (TTM)27.46%423.77%

Valuation

P/E Ratio (TTM)

Ally Financial (ALLY) at 8.73 sits in the cheaper P/E ratio quartile, while Ares Management (ARES) at 109.82 trades above its peer range — a wide earnings-valuation gap relative to industry peers.

ALLY

Financial Services industry group

8.73

Max
45.85
Q3
24.64
Median
15.37
Q1
9.68
ALLY
8.73
Min
0.16

ARES

Financial Services industry group

109.82

ARES
109.82
Max
45.85
Q3
24.64
Median
15.37
Q1
9.68
Min
0.16
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Ally Financial (ALLY) vs. Ares Management (ARES): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

Ally Financial (ALLY) at 1.43 is priced about in line with its industry on P/S ratio, while Ares Management (ARES) at 8.92 sits in the pricier quartile — ARES costs more per dollar of sales.

ALLY

Financial Services industry group

1.43

Max
9.23
Q3
4.57
Median
2.72
ALLY
1.43
Q1
1.28
Min
-0.55

ARES

Financial Services industry group

8.92

Max
9.23
ARES
8.92
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55
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Ally Financial (ALLY) vs. Ares Management (ARES): A comparison of their P/S ratio against the Financial Services industry group benchmark.

P/B Ratio (MRQ)

Ally Financial (ALLY) at 0.88 sits near its industry’s typical P/B ratio, while Ares Management (ARES) at 12.15 prices above its benchmark range — ARES looks rich relative to book.

ALLY

Financial Services industry group

0.88

Max
7.79
Q3
3.63
Median
1.57
ALLY
0.88
Q1
0.81
Min
-0.39

ARES

Financial Services industry group

12.15

ARES
12.15
Max
7.79
Q3
3.63
Median
1.57
Q1
0.81
Min
-0.39
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Ally Financial (ALLY) vs. Ares Management (ARES): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Ally Financial (ALLY) and Ares Management (ARES)
MetricALLYARES
P/E Ratio (TTM)8.73109.82
P/S Ratio (TTM)1.438.92
P/B Ratio (MRQ)0.8812.15
Free Cash Flow Yield (TTM)----