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

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Here’s a clear look at ARES and JPM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

JPM’s market capitalization of 822.61 billion USD is significantly greater than ARES’s 38.26 billion USD, highlighting its more substantial market valuation.

With betas of 1.40 for ARES and 1.08 for JPM, both stocks show similar sensitivity to overall market movements.

SymbolARESJPM
Company NameAres Management CorporationJPMorgan Chase & Co.
CountryUSUS
SectorFinancial ServicesFinancial Services
IndustryAsset ManagementBanks - Diversified
CEOMichael J. AroughetiJames Dimon
Price177.96 USD296 USD
Market Cap38.26 billion USD822.61 billion USD
Beta1.401.08
ExchangeNYSENYSE
IPO DateMay 2, 2014March 17, 1980
ADRNoNo

Historical Performance

This chart compares the performance of ARES and JPM 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. JPM: 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.

JPM

17.27%

Banks - Diversified Industry

Max
20.93%
Q3
14.73%
Median
12.33%
Q1
9.14%
Min
5.86%

In the upper quartile for the Banks - Diversified industry, JPM’s Return on Equity of 17.27% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ARES vs. JPM: A comparison of their ROE against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

JPM

3.56%

Banks - Diversified Industry

Max
4.52%
Q3
2.95%
Median
1.89%
Q1
0.86%
Min
0.18%

Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified industry.

ARES vs. JPM: A comparison of their ROIC against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

JPM

21.83%

Banks - Diversified Industry

Max
33.40%
Q3
26.40%
Median
19.24%
Q1
14.99%
Min
7.95%

JPM’s Net Profit Margin of 21.83% is aligned with the median group of its peers in the Banks - Diversified industry. This indicates its ability to convert revenue into profit is typical for the sector.

ARES vs. JPM: A comparison of their Net Profit Margin against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

JPM

27.87%

Banks - Diversified Industry

Max
50.90%
Q3
37.76%
Median
28.44%
Q1
15.73%
Min
8.60%

JPM’s Operating Profit Margin of 27.87% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.

ARES vs. JPM: A comparison of their Operating Margin against their respective Asset Management and Banks - Diversified industry benchmarks.

Profitability at a Glance

SymbolARESJPM
Return on Equity (TTM)17.03%17.27%
Return on Assets (TTM)1.89%1.37%
Return on Invested Capital (TTM)15.74%3.56%
Net Profit Margin (TTM)10.46%21.83%
Operating Profit Margin (TTM)27.62%27.87%
Gross Profit Margin (TTM)60.51%58.78%

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.

JPM

0.28

Banks - Diversified Industry

Max
0.67
Q3
0.49
Median
0.39
Q1
0.28
Min
0.06

For the Banks - Diversified industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ARES vs. JPM: A comparison of their Current Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

JPM

2.86

Banks - Diversified Industry

Max
4.98
Q3
3.65
Median
3.13
Q1
1.73
Min
0.09

JPM’s Debt-to-Equity Ratio of 2.86 is typical for the Banks - Diversified industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ARES vs. JPM: A comparison of their D/E Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

JPM

0.76

Banks - Diversified Industry

Max
0.98
Q3
0.78
Median
0.55
Q1
0.31
Min
0.09

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Diversified industry.

ARES vs. JPM: A comparison of their Interest Coverage against their respective Asset Management and Banks - Diversified industry benchmarks.

Financial Strength at a Glance

SymbolARESJPM
Current Ratio (TTM)0.900.28
Quick Ratio (TTM)0.900.28
Debt-to-Equity Ratio (TTM)0.152.86
Debt-to-Asset Ratio (TTM)0.030.23
Net Debt-to-EBITDA Ratio (TTM)0.046.88
Interest Coverage Ratio (TTM)1.950.76

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ARES vs. JPM: 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.

JPM

1.79%

Banks - Diversified Industry

Max
7.73%
Q3
4.16%
Median
3.24%
Q1
2.27%
Min
0.00%

JPM’s Dividend Yield of 1.79% is in the lower quartile for the Banks - Diversified industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ARES vs. JPM: A comparison of their Dividend Yield against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

JPM

25.32%

Banks - Diversified Industry

Max
84.94%
Q3
39.11%
Median
26.91%
Q1
0.00%
Min
0.00%

JPM’s Dividend Payout Ratio of 25.32% is within the typical range for the Banks - Diversified industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ARES vs. JPM: A comparison of their Payout Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

Dividend at a Glance

SymbolARESJPM
Dividend Yield (TTM)2.30%1.79%
Dividend Payout Ratio (TTM)323.36%25.32%

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.

JPM

13.98

Banks - Diversified Industry

Max
14.13
Q3
13.37
Median
11.90
Q1
9.29
Min
7.43

A P/E Ratio of 13.98 places JPM in the upper quartile for the Banks - Diversified industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ARES vs. JPM: A comparison of their P/E Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

JPM

2.04

Banks - Diversified Industry

Max
1.98
Q3
1.41
Median
1.15
Q1
0.77
Min
0.45

JPM’s Forward PEG Ratio of 2.04 is exceptionally high for the Banks - Diversified industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

ARES vs. JPM: A comparison of their Forward PEG Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

JPM

3.01

Banks - Diversified Industry

Max
4.15
Q3
2.92
Median
2.29
Q1
1.83
Min
0.94

The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.

ARES vs. JPM: A comparison of their P/S Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

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.

JPM

2.37

Banks - Diversified Industry

Max
1.89
Q3
1.47
Median
1.23
Q1
1.10
Min
0.65

At 2.37, JPM’s P/B Ratio is at an extreme premium to the Banks - Diversified industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ARES vs. JPM: A comparison of their P/B Ratio against their respective Asset Management and Banks - Diversified industry benchmarks.

Valuation at a Glance

SymbolARESJPM
Price-to-Earnings Ratio (P/E, TTM)72.4513.98
Forward PEG Ratio (TTM)3.262.04
Price-to-Sales Ratio (P/S, TTM)7.783.01
Price-to-Book Ratio (P/B, TTM)8.362.37
Price-to-Free Cash Flow Ratio (P/FCF, TTM)6.96-5.89
EV-to-EBITDA (TTM)23.4016.66
EV-to-Sales (TTM)7.805.13