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ARES vs. BAM: A Head-to-Head Stock Comparison

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Here’s a clear look at ARES and BAM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolARESBAM
Company NameAres Management CorporationBrookfield Asset Management Ltd.
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryCapital MarketsCapital Markets
Market Capitalization47.67 billion USD82.61 billion USD
ExchangeNYSENYSE
Listing DateMay 2, 2014December 1, 2022
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ARES and BAM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ARES vs. BAM: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolARESBAM
5-Day Price Return-7.68%-3.64%
13-Week Price Return-24.94%-16.04%
26-Week Price Return-19.21%-11.59%
52-Week Price Return-15.95%-8.87%
Month-to-Date Return-4.47%-4.62%
Year-to-Date Return-19.75%-4.85%
10-Day Avg. Volume1.71M3.44M
3-Month Avg. Volume1.74M2.04M
3-Month Volatility34.57%27.59%
Beta1.581.85

Profitability

Return on Equity (TTM)

ARES

15.46%

Capital Markets Industry

Max
41.61%
Q3
22.56%
Median
13.62%
Q1
9.23%
Min
-4.25%

ARES’s Return on Equity of 15.46% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

BAM

23.79%

Capital Markets Industry

Max
41.61%
Q3
22.56%
Median
13.62%
Q1
9.23%
Min
-4.25%

In the upper quartile for the Capital Markets industry, BAM’s Return on Equity of 23.79% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ARES vs. BAM: A comparison of their Return on Equity (TTM) against the Capital Markets industry benchmark.

Net Profit Margin (TTM)

ARES

12.14%

Capital Markets Industry

Max
69.91%
Q3
36.88%
Median
24.30%
Q1
13.14%
Min
-6.20%

Falling into the lower quartile for the Capital Markets industry, ARES’s Net Profit Margin of 12.14% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

BAM

55.57%

Capital Markets Industry

Max
69.91%
Q3
36.88%
Median
24.30%
Q1
13.14%
Min
-6.20%

A Net Profit Margin of 55.57% places BAM in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

ARES vs. BAM: A comparison of their Net Profit Margin (TTM) against the Capital Markets industry benchmark.

Operating Profit Margin (TTM)

ARES

17.08%

Capital Markets Industry

Max
83.68%
Q3
47.64%
Median
32.36%
Q1
19.28%
Min
0.30%

ARES’s Operating Profit Margin of 17.08% is in the lower quartile for the Capital Markets industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

BAM

54.25%

Capital Markets Industry

Max
83.68%
Q3
47.64%
Median
32.36%
Q1
19.28%
Min
0.30%

An Operating Profit Margin of 54.25% places BAM in the upper quartile for the Capital Markets industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ARES vs. BAM: A comparison of their Operating Profit Margin (TTM) against the Capital Markets industry benchmark.

Profitability at a Glance

SymbolARESBAM
Return on Equity (TTM)15.46%23.79%
Return on Assets (TTM)2.45%15.14%
Net Profit Margin (TTM)12.14%55.57%
Operating Profit Margin (TTM)17.08%54.25%
Gross Profit Margin (TTM)----

Financial Strength

Current Ratio (MRQ)

ARES

0.26

Capital Markets Industry

Max
3.43
Q3
1.76
Median
1.00
Q1
0.60
Min
0.04

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

BAM

1.35

Capital Markets Industry

Max
3.43
Q3
1.76
Median
1.00
Q1
0.60
Min
0.04

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ARES vs. BAM: A comparison of their Current Ratio (MRQ) against the Capital Markets industry benchmark.

Debt-to-Equity Ratio (MRQ)

ARES

2.69

Capital Markets Industry

Max
6.12
Q3
2.78
Median
0.96
Q1
0.31
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

BAM

0.31

Capital Markets Industry

Max
6.12
Q3
2.78
Median
0.96
Q1
0.31
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

ARES vs. BAM: A comparison of their Debt-to-Equity Ratio (MRQ) against the Capital Markets industry benchmark.

Interest Coverage Ratio (TTM)

ARES

--

Capital Markets Industry

Max
107.59
Q3
50.42
Median
10.94
Q1
4.37
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

BAM

20.09

Capital Markets Industry

Max
107.59
Q3
50.42
Median
10.94
Q1
4.37
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

ARES vs. BAM: A comparison of their Interest Coverage Ratio (TTM) against the Capital Markets industry benchmark.

Financial Strength at a Glance

SymbolARESBAM
Current Ratio (MRQ)0.261.35
Quick Ratio (MRQ)0.261.35
Debt-to-Equity Ratio (MRQ)2.690.31
Interest Coverage Ratio (TTM)--20.09

Growth

Revenue Growth

ARES vs. BAM: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ARES vs. BAM: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ARES

5.36%

Capital Markets Industry

Max
8.63%
Q3
4.88%
Median
2.72%
Q1
1.41%
Min
0.00%

With a Dividend Yield of 5.36%, ARES offers a more attractive income stream than most of its peers in the Capital Markets industry, signaling a strong commitment to shareholder returns.

BAM

2.17%

Capital Markets Industry

Max
8.63%
Q3
4.88%
Median
2.72%
Q1
1.41%
Min
0.00%

BAM’s Dividend Yield of 2.17% is consistent with its peers in the Capital Markets industry, providing a dividend return that is standard for its sector.

ARES vs. BAM: A comparison of their Dividend Yield (TTM) against the Capital Markets industry benchmark.

Dividend Payout Ratio (TTM)

ARES

251.91%

Capital Markets Industry

Max
188.84%
Q3
96.52%
Median
61.58%
Q1
31.74%
Min
0.00%

At 251.91%, ARES’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Capital Markets industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

BAM

122.97%

Capital Markets Industry

Max
188.84%
Q3
96.52%
Median
61.58%
Q1
31.74%
Min
0.00%

BAM’s Dividend Payout Ratio of 122.97% is in the upper quartile for the Capital Markets industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ARES vs. BAM: A comparison of their Dividend Payout Ratio (TTM) against the Capital Markets industry benchmark.

Dividend at a Glance

SymbolARESBAM
Dividend Yield (TTM)5.36%2.17%
Dividend Payout Ratio (TTM)251.91%122.97%

Valuation

Price-to-Earnings Ratio (TTM)

ARES

47.01

Capital Markets Industry

Max
47.53
Q3
28.81
Median
16.62
Q1
12.06
Min
5.71

A P/E Ratio of 47.01 places ARES in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

BAM

40.42

Capital Markets Industry

Max
47.53
Q3
28.81
Median
16.62
Q1
12.06
Min
5.71

A P/E Ratio of 40.42 places BAM in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ARES vs. BAM: A comparison of their Price-to-Earnings Ratio (TTM) against the Capital Markets industry benchmark.

Price-to-Sales Ratio (TTM)

ARES

5.71

Capital Markets Industry

Max
13.23
Q3
6.65
Median
4.40
Q1
2.22
Min
0.03

ARES’s P/S Ratio of 5.71 aligns with the market consensus for the Capital Markets industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

BAM

22.46

Capital Markets Industry

Max
13.23
Q3
6.65
Median
4.40
Q1
2.22
Min
0.03

With a P/S Ratio of 22.46, BAM trades at a valuation that eclipses even the highest in the Capital Markets industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ARES vs. BAM: A comparison of their Price-to-Sales Ratio (TTM) against the Capital Markets industry benchmark.

Price-to-Book Ratio (MRQ)

ARES

11.68

Capital Markets Industry

Max
10.83
Q3
5.27
Median
2.66
Q1
1.34
Min
0.37

At 11.68, ARES’s P/B Ratio is at an extreme premium to the Capital Markets industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

BAM

10.23

Capital Markets Industry

Max
10.83
Q3
5.27
Median
2.66
Q1
1.34
Min
0.37

BAM’s P/B Ratio of 10.23 is in the upper tier for the Capital Markets industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ARES vs. BAM: A comparison of their Price-to-Book Ratio (MRQ) against the Capital Markets industry benchmark.

Valuation at a Glance

SymbolARESBAM
Price-to-Earnings Ratio (TTM)47.0140.42
Price-to-Sales Ratio (TTM)5.7122.46
Price-to-Book Ratio (MRQ)11.6810.23
Price-to-Free Cash Flow Ratio (TTM)6.8182.56
ARES vs. BAM: A Head-to-Head Stock Comparison