ARES vs. DFS: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARES and DFS, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
With ARES at 34.18 billion USD and DFS at 50.34 billion USD, their market capitalizations sit in the same ballpark.
With betas of 1.42 for ARES and 1.15 for DFS, both show similar volatility profiles relative to the overall market.
| Symbol | ARES | DFS |
|---|---|---|
| Company Name | Ares Management Corporation | Discover Financial Services |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Financial - Credit Services |
| CEO | Mr. Michael J. Arougheti | Mr. J. Michael Shepherd |
| Price | 158.98 USD | 200.05 USD |
| Market Cap | 34.18 billion USD | 50.34 billion USD |
| Beta | 1.42 | 1.15 |
| Exchange | NYSE | NYSE |
| IPO Date | May 2, 2014 | June 14, 2007 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ARES and DFS over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
For a detailed comparison of valuation metrics between ARES and DFS, please refer to the table below.
| Symbol | ARES | DFS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 64.72 | 10.31 |
| Forward PEG Ratio (TTM) | 2.92 | 0.93 |
| Price-to-Sales Ratio (P/S, TTM) | 6.95 | 2.52 |
| Price-to-Book Ratio (P/B, TTM) | 7.47 | 2.66 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.22 | 5.96 |
| EV-to-EBITDA (TTM) | 20.91 | 5.87 |
| EV-to-Sales (TTM) | 6.97 | 1.92 |
| EV-to-Free Cash Flow (TTM) | 6.23 | 4.55 |
Dividend Comparison
ARES’s dividend yield of 2.46% is about 76% higher than DFS’s 1.40%, underscoring its stronger focus on returning cash to shareholders.
| Symbol | ARES | DFS |
|---|---|---|
| Dividend Yield (TTM) | 2.46% | 1.40% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARES and DFS, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- With current ratios of 0.90 and 0.00, both ARES and DFS have less current assets than short-term liabilities, which could strain their working capital and force reliance on additional financing.
- DFS posts a quick ratio of 0.00, indicating limited coverage of short-term debts from its most liquid assets—while ARES at 0.90 enjoys stronger liquidity resilience.
| Symbol | ARES | DFS |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 0.00 |
| Quick Ratio (TTM) | 0.90 | 0.00 |
| Debt-to-Equity Ratio (TTM) | 0.15 | 0.00 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.00 |
| Interest Coverage Ratio (TTM) | 1.95 | 1.91 |