ARES vs. NLY: Ares Management vs. Annaly Capital Management Stock Comparison

Company Profile

Ares Management (ARES) and Annaly Capital Management (NLY) both fall under the Financial Services industry group, but ARES is classified in Capital Markets while NLY is classified in Mortgage Real Estate Investment Trusts (REITs).

Ares Management (ARES) is an ordinary operating company, while Annaly Capital Management (NLY) is a REIT — read its payout ratio and P/E alongside FFO (funds from operations) rather than comparing them directly to ARES’s multiples.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Capital efficiency shows on one side only: Annaly Capital Management (NLY) earns 7.35% on shareholders’ equity, ranked against its industry; Ares Management (ARES) has no ROE this period.

Annaly Capital Management (NLY) at 80.27% converts revenue to bottom-line profit above its industry’s benchmark range, while Ares Management (ARES) at 8.69% keeps roughly the typical share for its industry.

Annaly Capital Management (NLY) at 107.33% carries a top-quartile operating margin, while Ares Management (ARES) at 2.89% operates in the bottom quartile.

Profitability Metrics

Growth

Both companies are growing quickly, but Annaly Capital Management (NLY) at 87.29% is the standout with revenue growth above its industry range; Ares Management (ARES) at 44.19% also sits in the top quartile.

Annaly Capital Management (NLY) at 80.25% sits in the top EPS growth quartile, while Ares Management (ARES) at -16.67% is closer to the peer norm — faster per-share earnings growth for NLY.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: Ares Management (ARES) in Financial Services and Annaly Capital Management (NLY) 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-to-equity ratio is set aside for both: Ares Management (ARES) in Financial Services and Annaly Capital Management (NLY) 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

Dividends

Ares Management (ARES) at 3.87% pays an industry-typical yield; Annaly Capital Management (NLY) at 15.38% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

Both Ares Management (ARES) at 423.77% and Annaly Capital Management (NLY) at 201.39% report payout ratio above 100%, meaning dividends exceeded current-period earnings on both sides.

Dividend Metrics

Valuation

Annaly Capital Management (NLY) at 13.02 is near its industry’s usual P/E ratio, while Ares Management (ARES) at 109.82 sits above its peer range — an unusually expensive price for ARES’s trailing earnings.

Both look expensive on sales: Ares Management (ARES) at 8.92 sits in the upper P/S ratio quartile, and Annaly Capital Management (NLY) at 10.62 prices even higher, above its industry range.

Annaly Capital Management (NLY) at 1.05 sits near its industry’s typical P/B ratio, while Ares Management (ARES) at 12.15 prices above its benchmark range — ARES looks rich relative to book.

Valuation Metrics