ARES vs. GS: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARES and GS, 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
GS stands out with 182.10 billion USD in market value—about 5.33× ARES’s market cap of 34.18 billion USD.
With betas of 1.42 for ARES and 1.31 for GS, both show similar volatility profiles relative to the overall market.
| Symbol | ARES | GS |
|---|---|---|
| Company Name | Ares Management Corporation | The Goldman Sachs Group, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Financial - Capital Markets |
| CEO | Mr. Michael J. Arougheti | Mr. David Solomon |
| Price | 158.98 USD | 593.46 USD |
| Market Cap | 34.18 billion USD | 182.10 billion USD |
| Beta | 1.42 | 1.31 |
| Exchange | NYSE | NYSE |
| IPO Date | May 2, 2014 | May 4, 1999 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ARES and GS 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
The section examines key financial ratios to assess the valuation of ARES and GS based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- GS reports a negative Price-to-Free Cash Flow ratio of -7.43, showing a cash flow shortfall that could threaten its operational sustainability, while ARES at 6.22 maintains positive cash flow.
| Symbol | ARES | GS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 64.72 | 12.79 |
| Forward PEG Ratio (TTM) | 2.92 | 1.07 |
| Price-to-Sales Ratio (P/S, TTM) | 6.95 | 3.54 |
| Price-to-Book Ratio (P/B, TTM) | 7.47 | 107.80 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.22 | -7.43 |
| EV-to-EBITDA (TTM) | 20.91 | 9.85 |
| EV-to-Sales (TTM) | 6.97 | 3.54 |
| EV-to-Free Cash Flow (TTM) | 6.23 | -7.43 |
Dividend Comparison
Both ARES and GS offer similar dividend yields (2.46% vs. 1.98%), indicating comparable approaches to balancing income and growth.
| Symbol | ARES | GS |
|---|---|---|
| Dividend Yield (TTM) | 2.46% | 1.98% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARES and GS, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- ARES’s current ratio of 0.90 signals a possible liquidity squeeze, while GS at 2.35 comfortably covers its short-term obligations.
- GS’s low interest coverage (0.23) means it doesn't cover interest from operating earnings. ARES (at 1.95) meets its interest obligations.
| Symbol | ARES | GS |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 2.35 |
| Quick Ratio (TTM) | 0.90 | 2.35 |
| Debt-to-Equity Ratio (TTM) | 0.15 | 0.04 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.02 |
| Interest Coverage Ratio (TTM) | 1.95 | 0.23 |