ARES vs. CINF: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARES and CINF, 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 CINF’s 23.23 billion USD, indicating a significant difference in their market valuations.
ARES’s beta of 1.40 points to significantly higher volatility compared to CINF (beta: 0.79), suggesting ARES has greater potential for both gains and losses relative to market movements.
| Symbol | ARES | CINF |
|---|---|---|
| Company Name | Ares Management Corporation | Cincinnati Financial Corporation |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Insurance - Property & Casualty |
| CEO | Michael J. Arougheti | Stephen Michael Spray |
| Price | 177.96 USD | 148.59 USD |
| Market Cap | 38.26 billion USD | 23.23 billion USD |
| Beta | 1.40 | 0.79 |
| Exchange | NYSE | NASDAQ |
| IPO Date | May 2, 2014 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARES and CINF 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.
CINF
10.67%
Insurance - Property & Casualty Industry
- Max
- 28.14%
- Q3
- 17.51%
- Median
- 12.75%
- Q1
- 8.26%
- Min
- 0.61%
CINF’s Return on Equity of 10.67% is on par with the norm for the Insurance - Property & Casualty industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
CINF
144.40%
Insurance - Property & Casualty Industry
- Max
- 21.89%
- Q3
- 10.09%
- Median
- 3.90%
- Q1
- 0.89%
- Min
- -7.26%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Property & Casualty 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.
CINF
13.19%
Insurance - Property & Casualty Industry
- Max
- 21.98%
- Q3
- 13.09%
- Median
- 9.18%
- Q1
- 6.10%
- Min
- 2.13%
A Net Profit Margin of 13.19% places CINF in the upper quartile for the Insurance - Property & Casualty industry, signifying strong profitability and more effective cost management than most of its peers.
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.
CINF
16.33%
Insurance - Property & Casualty Industry
- Max
- 31.70%
- Q3
- 17.32%
- Median
- 12.57%
- Q1
- 7.38%
- Min
- 4.31%
CINF’s Operating Profit Margin of 16.33% is around the midpoint for the Insurance - Property & Casualty industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARES | CINF |
|---|---|---|
| Return on Equity (TTM) | 17.03% | 10.67% |
| Return on Assets (TTM) | 1.89% | 3.88% |
| Return on Invested Capital (TTM) | 15.74% | 144.40% |
| Net Profit Margin (TTM) | 10.46% | 13.19% |
| Operating Profit Margin (TTM) | 27.62% | 16.33% |
| Gross Profit Margin (TTM) | 60.51% | 100.00% |
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.
CINF
40.40
Insurance - Property & Casualty Industry
- Max
- 51.52
- Q3
- 30.84
- Median
- 20.50
- Q1
- 6.61
- Min
- 0.41
CINF’s Current Ratio of 40.40 is in the upper quartile for the Insurance - Property & Casualty industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
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.
CINF
0.06
Insurance - Property & Casualty Industry
- Max
- 0.58
- Q3
- 0.36
- Median
- 0.27
- Q1
- 0.14
- Min
- 0.01
Falling into the lower quartile for the Insurance - Property & Casualty industry, CINF’s Debt-to-Equity Ratio of 0.06 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
CINF
33.79
Insurance - Property & Casualty Industry
- Max
- 39.40
- Q3
- 22.24
- Median
- 12.38
- Q1
- 6.68
- Min
- -12.40
CINF’s Interest Coverage Ratio of 33.79 is in the upper quartile for the Insurance - Property & Casualty industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ARES | CINF |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 40.40 |
| Quick Ratio (TTM) | 0.90 | 40.40 |
| Debt-to-Equity Ratio (TTM) | 0.15 | 0.06 |
| Debt-to-Asset Ratio (TTM) | 0.03 | 0.02 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.04 | -0.07 |
| Interest Coverage Ratio (TTM) | 1.95 | 33.79 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARES and CINF. 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.
CINF
2.26%
Insurance - Property & Casualty Industry
- Max
- 8.17%
- Q3
- 3.10%
- Median
- 1.79%
- Q1
- 0.00%
- Min
- 0.00%
CINF’s Dividend Yield of 2.26% is consistent with its peers in the Insurance - Property & Casualty industry, providing a dividend return that is standard for its sector.
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.
CINF
34.49%
Insurance - Property & Casualty Industry
- Max
- 115.20%
- Q3
- 35.27%
- Median
- 22.19%
- Q1
- 3.16%
- Min
- 0.00%
CINF’s Dividend Payout Ratio of 34.49% is within the typical range for the Insurance - Property & Casualty industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ARES | CINF |
|---|---|---|
| Dividend Yield (TTM) | 2.30% | 2.26% |
| Dividend Payout Ratio (TTM) | 323.36% | 34.49% |
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.
CINF
16.06
Insurance - Property & Casualty Industry
- Max
- 35.83
- Q3
- 23.28
- Median
- 14.49
- Q1
- 11.91
- Min
- 4.47
CINF’s P/E Ratio of 16.06 is within the middle range for the Insurance - Property & Casualty industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
CINF
0.78
Insurance - Property & Casualty Industry
- Max
- 2.53
- Q3
- 1.90
- Median
- 1.33
- Q1
- 0.86
- Min
- 0.01
In the lower quartile for the Insurance - Property & Casualty industry, CINF’s Forward PEG Ratio of 0.78 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
CINF
2.12
Insurance - Property & Casualty Industry
- Max
- 3.76
- Q3
- 2.39
- Median
- 1.80
- Q1
- 1.01
- Min
- 0.50
The P/S Ratio is often not a primary valuation tool in the Insurance - Property & Casualty industry.
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.
CINF
1.69
Insurance - Property & Casualty Industry
- Max
- 5.34
- Q3
- 2.95
- Median
- 1.92
- Q1
- 1.31
- Min
- 0.52
CINF’s P/B Ratio of 1.69 is within the conventional range for the Insurance - Property & Casualty industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ARES | CINF |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 72.45 | 16.06 |
| Forward PEG Ratio (TTM) | 3.26 | 0.78 |
| Price-to-Sales Ratio (P/S, TTM) | 7.78 | 2.12 |
| Price-to-Book Ratio (P/B, TTM) | 8.36 | 1.69 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.96 | 8.97 |
| EV-to-EBITDA (TTM) | 23.40 | 11.70 |
| EV-to-Sales (TTM) | 7.80 | 2.11 |