ARES vs. NU: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARES and NU, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
NU stands out with 57.78 billion USD in market value—about 1.69× ARES’s market cap of 34.18 billion USD.
With betas of 1.42 for ARES and 1.11 for NU, both show similar volatility profiles relative to the overall market.
| Symbol | ARES | NU |
|---|---|---|
| Company Name | Ares Management Corporation | Nu Holdings Ltd. |
| Country | US | BR |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Banks - Diversified |
| CEO | Mr. Michael J. Arougheti | Mr. David Velez-Osomo |
| Price | 158.98 USD | 11.99 USD |
| Market Cap | 34.18 billion USD | 57.78 billion USD |
| Beta | 1.42 | 1.11 |
| Exchange | NYSE | NYSE |
| IPO Date | May 2, 2014 | December 9, 2021 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ARES and NU 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 NU based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- NU shows a negative forward PEG of -0.27, signaling expected earnings contraction, while ARES at 2.92 maintains analysts’ projections for stable or improved profits.
| Symbol | ARES | NU |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 64.72 | 26.85 |
| Forward PEG Ratio (TTM) | 2.92 | -0.27 |
| Price-to-Sales Ratio (P/S, TTM) | 6.95 | 4.98 |
| Price-to-Book Ratio (P/B, TTM) | 7.47 | 6.71 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.22 | 15.11 |
| EV-to-EBITDA (TTM) | 20.91 | 14.14 |
| EV-to-Sales (TTM) | 6.97 | 3.76 |
| EV-to-Free Cash Flow (TTM) | 6.23 | 11.43 |
Dividend Comparison
ARES delivers a 2.46% dividend yield, blending income with growth, whereas NU appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.
| Symbol | ARES | NU |
|---|---|---|
| Dividend Yield (TTM) | 2.46% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARES and NU, 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 0.99, both ARES and NU have less current assets than short-term liabilities, which could strain their working capital and force reliance on additional financing.
- NU’s low interest coverage (0.98) means it doesn't cover interest from operating earnings. ARES (at 1.95) meets its interest obligations.
| Symbol | ARES | NU |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 0.99 |
| Quick Ratio (TTM) | 0.90 | 0.99 |
| Debt-to-Equity Ratio (TTM) | 0.15 | 0.10 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.02 |
| Interest Coverage Ratio (TTM) | 1.95 | 0.98 |