ARES vs. FSK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARES and FSK, 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 FSK’s 5.99 billion USD, indicating a significant difference in their market valuations.
With betas of 1.40 for ARES and 1.04 for FSK, both stocks show similar sensitivity to overall market movements.
| Symbol | ARES | FSK |
|---|---|---|
| Company Name | Ares Management Corporation | FS KKR Capital Corp. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Asset Management |
| CEO | Michael J. Arougheti | Michael Craig Forman |
| Price | 177.96 USD | 21.39 USD |
| Market Cap | 38.26 billion USD | 5.99 billion USD |
| Beta | 1.40 | 1.04 |
| Exchange | NYSE | NYSE |
| IPO Date | May 2, 2014 | April 16, 2014 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARES and FSK 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.
FSK
8.02%
Asset Management Industry
- Max
- 34.25%
- Q3
- 18.22%
- Median
- 11.24%
- Q1
- 5.81%
- Min
- -5.72%
FSK’s Return on Equity of 8.02% is on par with the norm for the Asset Management 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.
FSK
3.79%
Asset Management Industry
- Max
- 42.18%
- Q3
- 20.06%
- Median
- 8.68%
- Q1
- 3.13%
- Min
- -16.42%
FSK’s Return on Invested Capital of 3.79% is in line with the norm for the Asset Management industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
FSK
50.43%
Asset Management Industry
- Max
- 91.66%
- Q3
- 57.81%
- Median
- 29.48%
- Q1
- 15.70%
- Min
- -27.65%
FSK’s Net Profit Margin of 50.43% is aligned with the median group of its peers in the Asset Management industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
FSK
52.61%
Asset Management Industry
- Max
- 99.76%
- Q3
- 78.28%
- Median
- 34.76%
- Q1
- 21.75%
- Min
- -48.25%
FSK’s Operating Profit Margin of 52.61% is around the midpoint for the Asset Management industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARES | FSK |
|---|---|---|
| Return on Equity (TTM) | 17.03% | 8.02% |
| Return on Assets (TTM) | 1.89% | 3.57% |
| Return on Invested Capital (TTM) | 15.74% | 3.79% |
| Net Profit Margin (TTM) | 10.46% | 50.43% |
| Operating Profit Margin (TTM) | 27.62% | 52.61% |
| Gross Profit Margin (TTM) | 60.51% | 57.16% |
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.
FSK
2.72
Asset Management Industry
- Max
- 12.44
- Q3
- 5.76
- Median
- 3.04
- Q1
- 1.03
- Min
- 0.01
FSK’s Current Ratio of 2.72 aligns with the median group of the Asset Management industry, indicating that its short-term liquidity is in line with its sector 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.
FSK
1.22
Asset Management Industry
- Max
- 2.62
- Q3
- 1.42
- Median
- 0.76
- Q1
- 0.34
- Min
- 0.01
FSK’s Debt-to-Equity Ratio of 1.22 is typical for the Asset Management 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.
FSK
1.23
Asset Management Industry
- Max
- 13.30
- Q3
- 6.30
- Median
- 2.71
- Q1
- 1.00
- Min
- -6.91
FSK’s Interest Coverage Ratio of 1.23 is positioned comfortably within the norm for the Asset Management industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ARES | FSK |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 2.72 |
| Quick Ratio (TTM) | 0.90 | 2.72 |
| Debt-to-Equity Ratio (TTM) | 0.15 | 1.22 |
| Debt-to-Asset Ratio (TTM) | 0.03 | 0.54 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.04 | 13.54 |
| Interest Coverage Ratio (TTM) | 1.95 | 1.23 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARES and FSK. 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.
FSK
13.09%
Asset Management Industry
- Max
- 26.09%
- Q3
- 11.60%
- Median
- 6.37%
- Q1
- 2.75%
- Min
- 0.00%
With a Dividend Yield of 13.09%, FSK offers a more attractive income stream than most of its peers in the Asset Management industry, signaling a strong commitment to shareholder returns.
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.
FSK
150.00%
Asset Management Industry
- Max
- 1,034.88%
- Q3
- 127.70%
- Median
- 75.15%
- Q1
- 34.21%
- Min
- 0.00%
FSK’s Dividend Payout Ratio of 150.00% 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.
Dividend at a Glance
| Symbol | ARES | FSK |
|---|---|---|
| Dividend Yield (TTM) | 2.30% | 13.09% |
| Dividend Payout Ratio (TTM) | 323.36% | 150.00% |
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.
FSK
11.26
Asset Management Industry
- Max
- 38.72
- Q3
- 23.40
- Median
- 11.45
- Q1
- 8.80
- Min
- 1.54
FSK’s P/E Ratio of 11.26 is within the middle range for the Asset Management 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.
FSK
-1.95
Asset Management Industry
- Max
- 6.38
- Q3
- 3.23
- Median
- 1.55
- Q1
- 0.89
- Min
- 0.02
FSK has a negative Forward PEG Ratio of -1.95. 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.
FSK
5.68
Asset Management Industry
- Max
- 13.75
- Q3
- 7.92
- Median
- 4.87
- Q1
- 3.51
- Min
- 0.02
FSK’s P/S Ratio of 5.68 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.
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.
FSK
0.92
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.
Valuation at a Glance
| Symbol | ARES | FSK |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 72.45 | 11.26 |
| Forward PEG Ratio (TTM) | 3.26 | -1.95 |
| Price-to-Sales Ratio (P/S, TTM) | 7.78 | 5.68 |
| Price-to-Book Ratio (P/B, TTM) | 8.36 | 0.92 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.96 | 5.89 |
| EV-to-EBITDA (TTM) | 23.40 | 24.34 |
| EV-to-Sales (TTM) | 7.80 | 12.80 |