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

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

Company Profile

SymbolARESCOF
Company NameAres Management CorporationCapital One Financial Corporation
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryCapital MarketsConsumer Finance
Market Capitalization58.46 billion USD137.31 billion USD
ExchangeNYSENYSE
Listing DateMay 2, 2014November 16, 1994
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ARES and COF 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. COF: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolARESCOF
5-Day Price Return-6.05%-2.88%
13-Week Price Return6.10%8.76%
26-Week Price Return-2.96%8.82%
52-Week Price Return23.76%50.22%
Month-to-Date Return-3.56%-0.13%
Year-to-Date Return1.07%20.41%
10-Day Avg. Volume1.27M3.28M
3-Month Avg. Volume1.51M4.41M
3-Month Volatility25.97%26.24%
Beta1.511.22

Profitability

Return on Equity (TTM)

ARES

13.30%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

ARES’s Return on Equity of 13.30% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

COF

0.00%

Consumer Finance Industry

Max
32.87%
Q3
20.39%
Median
14.14%
Q1
7.64%
Min
-10.63%

COF’s Return on Equity of 0.00% is in the lower quartile for the Consumer Finance industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ARES vs. COF: A comparison of their Return on Equity (TTM) against their respective Capital Markets and Consumer Finance industry benchmarks.

Net Profit Margin (TTM)

ARES

9.94%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

Falling into the lower quartile for the Capital Markets industry, ARES’s Net Profit Margin of 9.94% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

COF

14.90%

Consumer Finance Industry

Max
19.68%
Q3
15.94%
Median
13.37%
Q1
9.73%
Min
3.66%

COF’s Net Profit Margin of 14.90% is aligned with the median group of its peers in the Consumer Finance industry. This indicates its ability to convert revenue into profit is typical for the sector.

ARES vs. COF: A comparison of their Net Profit Margin (TTM) against their respective Capital Markets and Consumer Finance industry benchmarks.

Operating Profit Margin (TTM)

ARES

17.40%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

ARES’s Operating Profit Margin of 17.40% 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.

COF

18.33%

Consumer Finance Industry

Max
50.11%
Q3
29.38%
Median
18.31%
Q1
14.26%
Min
-5.45%

COF’s Operating Profit Margin of 18.33% is around the midpoint for the Consumer Finance industry, indicating that its efficiency in managing core business operations is typical for the sector.

ARES vs. COF: A comparison of their Operating Profit Margin (TTM) against their respective Capital Markets and Consumer Finance industry benchmarks.

Profitability at a Glance

SymbolARESCOF
Return on Equity (TTM)13.30%0.00%
Return on Assets (TTM)1.85%0.00%
Net Profit Margin (TTM)9.94%14.90%
Operating Profit Margin (TTM)17.40%18.33%
Gross Profit Margin (TTM)----

Financial Strength

Current Ratio (MRQ)

ARES

0.31

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

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

COF

--

Consumer Finance Industry

Max
5.34
Q3
4.21
Median
2.67
Q1
0.71
Min
0.20

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

ARES vs. COF: A comparison of their Current Ratio (MRQ) against their respective Capital Markets and Consumer Finance industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ARES

2.93

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

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

COF

0.47

Consumer Finance Industry

Max
6.63
Q3
3.39
Median
2.21
Q1
0.94
Min
0.00

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

ARES vs. COF: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Capital Markets and Consumer Finance industry benchmarks.

Interest Coverage Ratio (TTM)

ARES

--

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

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

COF

--

Consumer Finance Industry

Max
49.63
Q3
39.33
Median
4.56
Q1
2.97
Min
-15.69

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

ARES vs. COF: A comparison of their Interest Coverage Ratio (TTM) against their respective Capital Markets and Consumer Finance industry benchmarks.

Financial Strength at a Glance

SymbolARESCOF
Current Ratio (MRQ)0.31--
Quick Ratio (MRQ)0.31--
Debt-to-Equity Ratio (MRQ)2.930.47
Interest Coverage Ratio (TTM)----

Growth

Revenue Growth

ARES vs. COF: 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. COF: 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

4.01%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

ARES’s Dividend Yield of 4.01% is consistent with its peers in the Capital Markets industry, providing a dividend return that is standard for its sector.

COF

0.96%

Consumer Finance Industry

Max
8.31%
Q3
3.93%
Median
2.51%
Q1
0.84%
Min
0.00%

COF’s Dividend Yield of 0.96% is consistent with its peers in the Consumer Finance industry, providing a dividend return that is standard for its sector.

ARES vs. COF: A comparison of their Dividend Yield (TTM) against their respective Capital Markets and Consumer Finance industry benchmarks.

Dividend Payout Ratio (TTM)

ARES

323.31%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

At 323.31%, 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.

COF

23.78%

Consumer Finance Industry

Max
145.89%
Q3
88.53%
Median
23.79%
Q1
0.00%
Min
0.00%

COF’s Dividend Payout Ratio of 23.78% is within the typical range for the Consumer Finance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ARES vs. COF: A comparison of their Dividend Payout Ratio (TTM) against their respective Capital Markets and Consumer Finance industry benchmarks.

Dividend at a Glance

SymbolARESCOF
Dividend Yield (TTM)4.01%0.96%
Dividend Payout Ratio (TTM)323.31%23.78%

Valuation

Price-to-Earnings Ratio (TTM)

ARES

80.55

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

At 80.55, ARES’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Capital Markets industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

COF

28.16

Consumer Finance Industry

Max
34.39
Q3
20.36
Median
13.05
Q1
9.29
Min
4.74

A P/E Ratio of 28.16 places COF in the upper quartile for the Consumer Finance industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ARES vs. COF: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Capital Markets and Consumer Finance industry benchmarks.

Price-to-Sales Ratio (TTM)

ARES

8.01

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

ARES’s P/S Ratio of 8.01 is in the upper echelon for the Capital Markets industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

COF

1.12

Consumer Finance Industry

Max
4.28
Q3
2.67
Median
1.88
Q1
1.15
Min
0.55

In the lower quartile for the Consumer Finance industry, COF’s P/S Ratio of 1.12 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

ARES vs. COF: A comparison of their Price-to-Sales Ratio (TTM) against their respective Capital Markets and Consumer Finance industry benchmarks.

Price-to-Book Ratio (MRQ)

ARES

12.97

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

At 12.97, 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.

COF

1.23

Consumer Finance Industry

Max
3.63
Q3
2.40
Median
1.96
Q1
1.16
Min
0.26

COF’s P/B Ratio of 1.23 is within the conventional range for the Consumer Finance 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.

ARES vs. COF: A comparison of their Price-to-Book Ratio (MRQ) against their respective Capital Markets and Consumer Finance industry benchmarks.

Valuation at a Glance

SymbolARESCOF
Price-to-Earnings Ratio (TTM)80.5528.16
Price-to-Sales Ratio (TTM)8.011.12
Price-to-Book Ratio (MRQ)12.971.23
Price-to-Free Cash Flow Ratio (TTM)9.727.53