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

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Here’s a clear look at ARES and HTGC, 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 HTGC’s 3.26 billion USD, indicating a significant difference in their market valuations.

ARES’s beta of 1.40 points to significantly higher volatility compared to HTGC (beta: 0.86), suggesting ARES has greater potential for both gains and losses relative to market movements.

SymbolARESHTGC
Company NameAres Management CorporationHercules Capital, Inc.
CountryUSUS
SectorFinancial ServicesFinancial Services
IndustryAsset ManagementAsset Management
CEOMichael J. AroughetiScott Bluestein
Price177.96 USD18.61 USD
Market Cap38.26 billion USD3.26 billion USD
Beta1.400.86
ExchangeNYSENYSE
IPO DateMay 2, 2014June 9, 2005
ADRNoNo

Historical Performance

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

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.

HTGC

-4.73%

Asset Management Industry

Max
34.25%
Q3
18.22%
Median
11.24%
Q1
5.81%
Min
-5.72%

HTGC has a negative Return on Equity of -4.73%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

ARES vs. HTGC: A comparison of their ROE against the Asset Management industry benchmark.

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.

HTGC

185.87%

Asset Management Industry

Max
42.18%
Q3
20.06%
Median
8.68%
Q1
3.13%
Min
-16.42%

HTGC’s Return on Invested Capital of 185.87% is exceptionally high, placing it well beyond the typical range for the Asset Management industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

ARES vs. HTGC: A comparison of their ROIC against the Asset Management industry benchmark.

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.

HTGC

-23.43%

Asset Management Industry

Max
91.66%
Q3
57.81%
Median
29.48%
Q1
15.70%
Min
-27.65%

HTGC has a negative Net Profit Margin of -23.43%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

ARES vs. HTGC: A comparison of their Net Profit Margin against the Asset Management industry benchmark.

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.

HTGC

47.79%

Asset Management Industry

Max
99.76%
Q3
78.28%
Median
34.76%
Q1
21.75%
Min
-48.25%

HTGC’s Operating Profit Margin of 47.79% is around the midpoint for the Asset Management industry, indicating that its efficiency in managing core business operations is typical for the sector.

ARES vs. HTGC: A comparison of their Operating Margin against the Asset Management industry benchmark.

Profitability at a Glance

SymbolARESHTGC
Return on Equity (TTM)17.03%-4.73%
Return on Assets (TTM)1.89%-2.26%
Return on Invested Capital (TTM)15.74%185.87%
Net Profit Margin (TTM)10.46%-23.43%
Operating Profit Margin (TTM)27.62%47.79%
Gross Profit Margin (TTM)60.51%83.12%

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.

HTGC

4.79

Asset Management Industry

Max
12.44
Q3
5.76
Median
3.04
Q1
1.03
Min
0.01

HTGC’s Current Ratio of 4.79 aligns with the median group of the Asset Management industry, indicating that its short-term liquidity is in line with its sector peers.

ARES vs. HTGC: A comparison of their Current Ratio against the Asset Management industry benchmark.

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.

HTGC

0.01

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, HTGC’s Debt-to-Equity Ratio of 0.01 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ARES vs. HTGC: A comparison of their D/E Ratio against the Asset Management industry benchmark.

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.

HTGC

3.12

Asset Management Industry

Max
13.30
Q3
6.30
Median
2.71
Q1
1.00
Min
-6.91

HTGC’s Interest Coverage Ratio of 3.12 is positioned comfortably within the norm for the Asset Management industry, indicating a standard and healthy capacity to cover its interest payments.

ARES vs. HTGC: A comparison of their Interest Coverage against the Asset Management industry benchmark.

Financial Strength at a Glance

SymbolARESHTGC
Current Ratio (TTM)0.904.79
Quick Ratio (TTM)0.904.79
Debt-to-Equity Ratio (TTM)0.150.01
Debt-to-Asset Ratio (TTM)0.030.00
Net Debt-to-EBITDA Ratio (TTM)0.04-0.13
Interest Coverage Ratio (TTM)1.953.12

Growth

The following charts compare key year-over-year (YoY) growth metrics for ARES and HTGC. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ARES vs. HTGC: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ARES vs. HTGC: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ARES vs. HTGC: A comparison of their annual year-over-year 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.

HTGC

10.21%

Asset Management Industry

Max
26.09%
Q3
11.60%
Median
6.37%
Q1
2.75%
Min
0.00%

HTGC’s Dividend Yield of 10.21% is consistent with its peers in the Asset Management industry, providing a dividend return that is standard for its sector.

ARES vs. HTGC: A comparison of their Dividend Yield against the Asset Management industry benchmark.

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.

HTGC

-251.99%

Asset Management Industry

Max
1,034.88%
Q3
127.70%
Median
75.15%
Q1
34.21%
Min
0.00%

HTGC has a negative Dividend Payout Ratio of -251.99%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.

ARES vs. HTGC: A comparison of their Payout Ratio against the Asset Management industry benchmark.

Dividend at a Glance

SymbolARESHTGC
Dividend Yield (TTM)2.30%10.21%
Dividend Payout Ratio (TTM)323.36%-251.99%

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.

HTGC

-35.09

Asset Management Industry

Max
38.72
Q3
23.40
Median
11.45
Q1
8.80
Min
1.54

HTGC has a negative P/E Ratio of -35.09. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.

ARES vs. HTGC: A comparison of their P/E Ratio against the Asset Management industry benchmark.

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.

HTGC

-34.63

Asset Management Industry

Max
6.38
Q3
3.23
Median
1.55
Q1
0.89
Min
0.02

HTGC has a negative Forward PEG Ratio of -34.63. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.

ARES vs. HTGC: A comparison of their Forward PEG Ratio against the Asset Management industry benchmark.

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.

HTGC

8.41

Asset Management Industry

Max
13.75
Q3
7.92
Median
4.87
Q1
3.51
Min
0.02

HTGC’s P/S Ratio of 8.41 is in the upper echelon for the Asset Management 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.

ARES vs. HTGC: A comparison of their P/S Ratio against the Asset Management industry benchmark.

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.

HTGC

1.60

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.

ARES vs. HTGC: A comparison of their P/B Ratio against the Asset Management industry benchmark.

Valuation at a Glance

SymbolARESHTGC
Price-to-Earnings Ratio (P/E, TTM)72.45-35.09
Forward PEG Ratio (TTM)3.26-34.63
Price-to-Sales Ratio (P/S, TTM)7.788.41
Price-to-Book Ratio (P/B, TTM)8.361.60
Price-to-Free Cash Flow Ratio (P/FCF, TTM)6.96-8.05
EV-to-EBITDA (TTM)23.4012.96
EV-to-Sales (TTM)7.808.32