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ARES vs. IBKR: Ares Management vs. Interactive Brokers Stock Comparison

How do Ares Management (ARES) and Interactive Brokers (IBKR) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Ares Management (ARES) and Interactive Brokers (IBKR) both belong to the Capital Markets industry, though ARES is classified under Asset Management & Custody Banks while IBKR falls under Investment Banking & Brokerage.

Company profile comparison for Ares Management (ARES) and Interactive Brokers (IBKR)
Profile ItemARESIBKR
NameAres Management Corp. Class A Common StockInteractive Brokers Group, Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryCapital MarketsCapital Markets
GICS Sub-IndustryAsset Management & Custody BanksInvestment Banking & Brokerage
Market Capitalization44.45 billion USD129.19 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateMay 2, 2014May 4, 2007
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ARES
IBKR
GSPC
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Ares Management (ARES) vs. Interactive Brokers (IBKR), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Ares Management (ARES) and Interactive Brokers (IBKR). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Ares Management (ARES) and Interactive Brokers (IBKR). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Ares Management (ARES) and Interactive Brokers (IBKR)
MetricARESIBKR
Total Return (1Y)-5.55%11.53%
Total Return (3Y, Annualized)13.18%57.15%
Total Return (5Y, Annualized)13.38%34.54%

Risk Profile

Drawdown History

ARES
IBKR
GSPC
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Ares Management (ARES) vs. Interactive Brokers (IBKR), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Ares Management (ARES) and Interactive Brokers (IBKR). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Ares Management (ARES) and Interactive Brokers (IBKR)
MetricARESIBKR
Volatility (1Y, Annualized)44.09%40.72%
Beta (5Y)1.451.37
Max Drawdown (5Y)-49.97%-38.66%
Avg. Volume (3M)2.20M4.24M

Risk-Adjusted Performance

Risk-Return Positioning

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ARES and IBKR are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Ares Management (ARES) and Interactive Brokers (IBKR)
MetricARESIBKR
Sharpe Ratio (1Y)-0.220.18
Sortino Ratio (1Y)-0.310.26

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Interactive Brokers (IBKR) earns 23.67% on shareholders’ equity, ranked against its industry; Ares Management (ARES) has no ROE this period.

ARES

Financial Services industry group

--

Max
44.78%
Q3
21.85%
Median
12.91%
Q1
4.48%
Min
-18.71%
ARES
--

IBKR

Financial Services industry group

23.67%

Max
44.78%
IBKR
23.67%
Q3
21.85%
Median
12.91%
Q1
4.48%
Min
-18.71%
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Ares Management (ARES) vs. Interactive Brokers (IBKR): ARES does not report ROE, so it has no value marker; IBKR is benchmarked against the Financial Services industry group.

Net Margin (TTM)

Both Ares Management (ARES) at 8.69% and Interactive Brokers (IBKR) at 16.68% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

ARES

Financial Services industry group

8.69%

Max
62.84%
Q3
28.05%
Median
15.36%
ARES
8.69%
Q1
4.82%
Min
-28.52%

IBKR

Financial Services industry group

16.68%

Max
62.84%
Q3
28.05%
IBKR
16.68%
Median
15.36%
Q1
4.82%
Min
-28.52%
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Ares Management (ARES) vs. Interactive Brokers (IBKR): A comparison of their net margin against the Financial Services industry group benchmark.

Operating Margin (TTM)

Interactive Brokers (IBKR) at 77.70% carries a top-quartile operating margin, while Ares Management (ARES) at 2.89% operates in the bottom quartile.

ARES

Financial Services industry group

2.89%

Max
107.33%
Q3
55.90%
Median
30.09%
Q1
14.60%
ARES
2.89%
Min
-44.34%

IBKR

Financial Services industry group

77.70%

Max
107.33%
IBKR
77.70%
Q3
55.90%
Median
30.09%
Q1
14.60%
Min
-44.34%
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Ares Management (ARES) vs. Interactive Brokers (IBKR): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Ares Management (ARES) and Interactive Brokers (IBKR)
MetricARESIBKR
ROE (TTM)--23.67%
ROA (TTM)--2.28%
Net Margin (TTM)8.69%16.68%
Operating Margin (TTM)2.89%77.70%
Gross Margin (TTM)----

Growth

Revenue Growth

Ares Management (ARES) at 44.19% sits in the top revenue growth quartile, while Interactive Brokers (IBKR) at 9.73% is closer to the peer norm — faster top-line expansion for ARES.

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Ares Management (ARES) vs. Interactive Brokers (IBKR): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Ares Management (ARES) at -16.67% and Interactive Brokers (IBKR) at 28.14% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Ares Management (ARES) vs. Interactive Brokers (IBKR): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Ares Management (ARES) and Interactive Brokers (IBKR)
MetricARESIBKR
Revenue Growth (YoY)44.19%9.73%
Revenue Growth (3Y CAGR)22.39%34.60%
EPS Growth (YoY)-16.67%28.14%
EPS Growth (3Y CAGR)25.02%33.29%

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Ares Management (ARES) in Financial Services and Interactive Brokers (IBKR) in Financial Services both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for both: Ares Management (ARES) in Financial Services and Interactive Brokers (IBKR) in Financial Services run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Financial strength metrics for Ares Management (ARES) and Interactive Brokers (IBKR)
MetricARESIBKR
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Both Ares Management (ARES) at 3.87% and Interactive Brokers (IBKR) at 0.46% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

ARES

Financial Services industry group

3.87%

Max
9.77%
Q3
3.92%
ARES
3.87%
Median
1.09%
Q1
0.00%
Min
0.00%

IBKR

Financial Services industry group

0.46%

Max
9.77%
Q3
3.92%
Median
1.09%
IBKR
0.46%
Q1
0.00%
Min
0.00%
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Ares Management (ARES) vs. Interactive Brokers (IBKR): A comparison of their dividend yield against the Financial Services industry group benchmark.

Dividend Payout Ratio (TTM)

Ares Management (ARES) reports payout ratio above 100% at 423.77%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Interactive Brokers (IBKR) reports 12.79%, ranking against industry peers normally.

ARES

Financial Services industry group

423.77%

ARES
423.77%
Max
241.07%
Q3
97.36%
Median
25.77%
Q1
0.00%
Min
0.00%

IBKR

Financial Services industry group

12.79%

Max
241.07%
Q3
97.36%
Median
25.77%
IBKR
12.79%
Q1
0.00%
Min
0.00%
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Ares Management (ARES) vs. Interactive Brokers (IBKR): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for Ares Management (ARES) and Interactive Brokers (IBKR)
MetricARESIBKR
Dividend Yield (TTM)3.87%0.46%
Dividend Payout Ratio (TTM)423.77%12.79%

Valuation

P/E Ratio (TTM)

Both look expensive on trailing earnings: Interactive Brokers (IBKR) at 28.94 sits in the richer P/E ratio quartile, and Ares Management (ARES) at 109.82 is richer still, above its industry range.

ARES

Financial Services industry group

109.82

ARES
109.82
Max
45.85
Q3
24.64
Median
15.37
Q1
9.68
Min
0.16

IBKR

Financial Services industry group

28.94

Max
45.85
IBKR
28.94
Q3
24.64
Median
15.37
Q1
9.68
Min
0.16
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Ares Management (ARES) vs. Interactive Brokers (IBKR): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

Both look expensive on sales: Ares Management (ARES) at 8.92 sits in the upper P/S ratio quartile, and Interactive Brokers (IBKR) at 18.30 prices even higher, above its industry range.

ARES

Financial Services industry group

8.92

Max
9.23
ARES
8.92
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55

IBKR

Financial Services industry group

18.30

IBKR
18.30
Max
9.23
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55
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Ares Management (ARES) vs. Interactive Brokers (IBKR): A comparison of their P/S ratio against the Financial Services industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Interactive Brokers (IBKR) at 5.53 sits in the upper P/B ratio quartile, and Ares Management (ARES) at 12.15 prices even higher, above its industry range.

ARES

Financial Services industry group

12.15

ARES
12.15
Max
7.79
Q3
3.63
Median
1.57
Q1
0.81
Min
-0.39

IBKR

Financial Services industry group

5.53

Max
7.79
IBKR
5.53
Q3
3.63
Median
1.57
Q1
0.81
Min
-0.39
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Ares Management (ARES) vs. Interactive Brokers (IBKR): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Ares Management (ARES) and Interactive Brokers (IBKR)
MetricARESIBKR
P/E Ratio (TTM)109.8228.94
P/S Ratio (TTM)8.9218.30
P/B Ratio (MRQ)12.155.53
Free Cash Flow Yield (TTM)----