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

Company Overview

With ARES at 34.18 billion USD and LPLA at 30.23 billion USD, their market capitalizations sit in the same ballpark.

ARES’s beta of 1.42 points to much larger expected swings compared to LPLA’s calmer 0.64, suggesting both higher upside and downside potential.

Performance Comparison

This chart compares the performance of ARES and LPLA 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 LPLA based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

• LPLA reports a negative Price-to-Free Cash Flow ratio of -89.81, showing a cash flow shortfall that could threaten its operational sustainability, while ARES at 6.22 maintains positive cash flow.

Dividend Comparison

ARES’s dividend yield of 2.46% is about 933% higher than LPLA’s 0.24%, underscoring its stronger focus on returning cash to shareholders.

Financial Strength Metrics Comparison

This section dives into the financial resilience of ARES and LPLA, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

• With current ratios of 0.90 and 0.00, both ARES and LPLA have less current assets than short-term liabilities, which could strain their working capital and force reliance on additional financing.
• LPLA posts a quick ratio of 0.00, indicating limited coverage of short-term debts from its most liquid assets—while ARES at 0.90 enjoys stronger liquidity resilience.