ARES vs. BNT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARES and BNT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ARES’s market capitalization of 38.26 billion USD is substantially larger than BNT’s 15.56 billion USD, indicating a significant difference in their market valuations.
With betas of 1.40 for ARES and 1.76 for BNT, both stocks show similar sensitivity to overall market movements.
Symbol | ARES | BNT |
---|---|---|
Company Name | Ares Management Corporation | Brookfield Wealth Solutions Ltd. |
Country | US | BM |
Sector | Financial Services | Financial Services |
Industry | Asset Management | Insurance - Diversified |
CEO | Michael J. Arougheti | Gregory N. McConnie |
Price | 177.96 USD | 64.18 USD |
Market Cap | 38.26 billion USD | 15.56 billion USD |
Beta | 1.40 | 1.76 |
Exchange | NYSE | NYSE |
IPO Date | May 2, 2014 | June 28, 2021 |
ADR | No | No |
Historical Performance
This chart compares the performance of ARES and BNT 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.
Profitability
Return on Equity
ARES
17.03%
Asset Management Industry
- Max
- 34.25%
- Q3
- 18.22%
- Median
- 11.24%
- Q1
- 5.81%
- Min
- -5.72%
ARES’s Return on Equity of 17.03% is on par with the norm for the Asset Management industry, indicating its profitability relative to shareholder equity is typical for the sector.
BNT
4.82%
Insurance - Diversified Industry
- Max
- 19.59%
- Q3
- 17.66%
- Median
- 12.77%
- Q1
- 7.56%
- Min
- -4.43%
BNT’s Return on Equity of 4.82% is in the lower quartile for the Insurance - Diversified industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Return on Invested Capital
ARES
15.74%
Asset Management Industry
- Max
- 42.18%
- Q3
- 20.06%
- Median
- 8.68%
- Q1
- 3.13%
- Min
- -16.42%
ARES’s Return on Invested Capital of 15.74% is in line with the norm for the Asset Management industry, reflecting a standard level of efficiency in generating profits from its capital base.
BNT
0.47%
Insurance - Diversified Industry
- Max
- 32.46%
- Q3
- 16.21%
- Median
- 9.46%
- Q1
- 2.09%
- Min
- -10.51%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Diversified industry.
Net Profit Margin
ARES
10.46%
Asset Management Industry
- Max
- 91.66%
- Q3
- 57.81%
- Median
- 29.48%
- Q1
- 15.70%
- Min
- -27.65%
Falling into the lower quartile for the Asset Management industry, ARES’s Net Profit Margin of 10.46% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
BNT
3.74%
Insurance - Diversified Industry
- Max
- 26.00%
- Q3
- 19.46%
- Median
- 9.37%
- Q1
- 5.55%
- Min
- -7.05%
Falling into the lower quartile for the Insurance - Diversified industry, BNT’s Net Profit Margin of 3.74% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin
ARES
27.62%
Asset Management Industry
- Max
- 99.76%
- Q3
- 78.28%
- Median
- 34.76%
- Q1
- 21.75%
- Min
- -48.25%
ARES’s Operating Profit Margin of 27.62% is around the midpoint for the Asset Management industry, indicating that its efficiency in managing core business operations is typical for the sector.
BNT
3.85%
Insurance - Diversified Industry
- Max
- 44.52%
- Q3
- 25.84%
- Median
- 14.16%
- Q1
- 6.78%
- Min
- -2.60%
BNT’s Operating Profit Margin of 3.85% is in the lower quartile for the Insurance - Diversified industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
Symbol | ARES | BNT |
---|---|---|
Return on Equity (TTM) | 17.03% | 4.82% |
Return on Assets (TTM) | 1.89% | 0.38% |
Return on Invested Capital (TTM) | 15.74% | 0.47% |
Net Profit Margin (TTM) | 10.46% | 3.74% |
Operating Profit Margin (TTM) | 27.62% | 3.85% |
Gross Profit Margin (TTM) | 60.51% | 58.17% |
Financial Strength
Current Ratio
ARES
0.90
Asset Management Industry
- Max
- 12.44
- Q3
- 5.76
- Median
- 3.04
- Q1
- 1.03
- Min
- 0.01
ARES’s Current Ratio of 0.90 falls into the lower quartile for the Asset Management industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
BNT
42.40
Insurance - Diversified Industry
- Max
- 4.41
- Q3
- 4.03
- Median
- 2.86
- Q1
- 2.82
- Min
- 2.82
BNT’s Current Ratio of 42.40 is exceptionally high, placing it well outside the typical range for the Insurance - Diversified industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
Debt-to-Equity Ratio
ARES
0.15
Asset Management Industry
- Max
- 2.62
- Q3
- 1.42
- Median
- 0.76
- Q1
- 0.34
- Min
- 0.01
Falling into the lower quartile for the Asset Management industry, ARES’s Debt-to-Equity Ratio of 0.15 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
BNT
0.37
Insurance - Diversified Industry
- Max
- 0.54
- Q3
- 0.39
- Median
- 0.27
- Q1
- 0.21
- Min
- 0.13
BNT’s Debt-to-Equity Ratio of 0.37 is typical for the Insurance - Diversified industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ARES
1.95
Asset Management Industry
- Max
- 13.30
- Q3
- 6.30
- Median
- 2.71
- Q1
- 1.00
- Min
- -6.91
ARES’s Interest Coverage Ratio of 1.95 is positioned comfortably within the norm for the Asset Management industry, indicating a standard and healthy capacity to cover its interest payments.
BNT
0.41
Insurance - Diversified Industry
- Max
- 19.23
- Q3
- 17.46
- Median
- 7.97
- Q1
- 4.61
- Min
- -1.63
BNT’s Interest Coverage Ratio of 0.41 is a critical concern. A value below 1.0 means operating earnings are insufficient to cover interest expenses, indicating severe financial strain and high default risk.
Financial Strength at a Glance
Symbol | ARES | BNT |
---|---|---|
Current Ratio (TTM) | 0.90 | 42.40 |
Quick Ratio (TTM) | 0.90 | 42.40 |
Debt-to-Equity Ratio (TTM) | 0.15 | 0.37 |
Debt-to-Asset Ratio (TTM) | 0.03 | 0.03 |
Net Debt-to-EBITDA Ratio (TTM) | 0.04 | -7.85 |
Interest Coverage Ratio (TTM) | 1.95 | 0.41 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARES and BNT. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ARES
2.30%
Asset Management Industry
- Max
- 26.09%
- Q3
- 11.60%
- Median
- 6.37%
- Q1
- 2.75%
- Min
- 0.00%
ARES’s Dividend Yield of 2.30% is in the lower quartile for the Asset Management industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
BNT
0.53%
Insurance - Diversified Industry
- Max
- 8.16%
- Q3
- 5.54%
- Median
- 2.46%
- Q1
- 1.59%
- Min
- 0.00%
BNT’s Dividend Yield of 0.53% is in the lower quartile for the Insurance - Diversified industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio
ARES
323.36%
Asset Management Industry
- Max
- 1,034.88%
- Q3
- 127.70%
- Median
- 75.15%
- Q1
- 34.21%
- Min
- 0.00%
ARES’s Dividend Payout Ratio of 323.36% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
BNT
0.00%
Insurance - Diversified Industry
- Max
- 101.86%
- Q3
- 53.36%
- Median
- 21.69%
- Q1
- 5.33%
- Min
- 0.00%
BNT has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
Symbol | ARES | BNT |
---|---|---|
Dividend Yield (TTM) | 2.30% | 0.53% |
Dividend Payout Ratio (TTM) | 323.36% | 0.00% |
Valuation
Price-to-Earnings Ratio
ARES
72.45
Asset Management Industry
- Max
- 38.72
- Q3
- 23.40
- Median
- 11.45
- Q1
- 8.80
- Min
- 1.54
At 72.45, ARES’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Asset Management industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
BNT
29.20
Insurance - Diversified Industry
- Max
- 18.52
- Q3
- 16.13
- Median
- 13.33
- Q1
- 9.73
- Min
- 2.62
At 29.20, BNT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Insurance - Diversified industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
ARES
3.26
Asset Management Industry
- Max
- 6.38
- Q3
- 3.23
- Median
- 1.55
- Q1
- 0.89
- Min
- 0.02
A Forward PEG Ratio of 3.26 places ARES in the upper quartile for the Asset Management industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
BNT
-0.62
Insurance - Diversified Industry
- Max
- 2.60
- Q3
- 2.07
- Median
- 1.20
- Q1
- 0.77
- Min
- 0.04
BNT has a negative Forward PEG Ratio of -0.62. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
Price-to-Sales Ratio
ARES
7.78
Asset Management Industry
- Max
- 13.75
- Q3
- 7.92
- Median
- 4.87
- Q1
- 3.51
- Min
- 0.02
ARES’s P/S Ratio of 7.78 aligns with the market consensus for the Asset Management industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
BNT
1.09
Insurance - Diversified Industry
- Max
- 3.08
- Q3
- 2.00
- Median
- 1.15
- Q1
- 1.07
- Min
- 0.38
BNT’s P/S Ratio of 1.09 aligns with the market consensus for the Insurance - Diversified industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ARES
8.36
Asset Management Industry
- Max
- 5.33
- Q3
- 2.75
- Median
- 1.06
- Q1
- 0.87
- Min
- 0.00
The P/B Ratio is often not a primary valuation metric for the Asset Management industry.
BNT
1.27
Insurance - Diversified Industry
- Max
- 2.12
- Q3
- 1.80
- Median
- 1.59
- Q1
- 1.29
- Min
- 0.74
BNT’s P/B Ratio of 1.27 is in the lower quartile for the Insurance - Diversified industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
Symbol | ARES | BNT |
---|---|---|
Price-to-Earnings Ratio (P/E, TTM) | 72.45 | 29.20 |
Forward PEG Ratio (TTM) | 3.26 | -0.62 |
Price-to-Sales Ratio (P/S, TTM) | 7.78 | 1.09 |
Price-to-Book Ratio (P/B, TTM) | 8.36 | 1.27 |
Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.96 | 3.44 |
EV-to-EBITDA (TTM) | 23.40 | 8.01 |
EV-to-Sales (TTM) | 7.80 | 0.55 |