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

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

Company Profile

SymbolARESNU
Company NameAres Management CorporationNu Holdings Ltd.
CountryUnited StatesBrazil
GICS SectorFinancialsFinancials
GICS IndustryCapital MarketsBanks
Market Capitalization58.46 billion USD65.82 billion USD
ExchangeNYSENYSE
Listing DateMay 2, 2014December 9, 2021
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ARES and NU 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. NU: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolARESNU
5-Day Price Return-6.05%13.41%
13-Week Price Return6.10%3.97%
26-Week Price Return-2.96%-1.23%
52-Week Price Return23.76%-5.74%
Month-to-Date Return-3.56%11.46%
Year-to-Date Return1.07%31.47%
10-Day Avg. Volume1.27M60.69M
3-Month Avg. Volume1.51M60.33M
3-Month Volatility25.97%45.35%
Beta1.511.06

Profitability

Return on Equity (TTM)

ARES

13.30%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

ARES’s Return on Equity of 13.30% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

NU

27.49%

Banks Industry

Max
26.37%
Q3
15.92%
Median
12.25%
Q1
8.69%
Min
0.15%

NU’s Return on Equity of 27.49% is exceptionally high, placing it well beyond the typical range for the Banks industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ARES vs. NU: A comparison of their Return on Equity (TTM) against their respective Capital Markets and Banks industry benchmarks.

Net Profit Margin (TTM)

ARES

9.94%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

Falling into the lower quartile for the Capital Markets industry, ARES’s Net Profit Margin of 9.94% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

NU

17.90%

Banks Industry

Max
54.20%
Q3
35.70%
Median
28.97%
Q1
22.53%
Min
6.98%

Falling into the lower quartile for the Banks industry, NU’s Net Profit Margin of 17.90% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

ARES vs. NU: A comparison of their Net Profit Margin (TTM) against their respective Capital Markets and Banks industry benchmarks.

Operating Profit Margin (TTM)

ARES

17.40%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

ARES’s Operating Profit Margin of 17.40% is in the lower quartile for the Capital Markets industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

NU

24.64%

Banks Industry

Max
63.35%
Q3
44.59%
Median
37.24%
Q1
28.25%
Min
13.37%

NU’s Operating Profit Margin of 24.64% is in the lower quartile for the Banks industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

ARES vs. NU: A comparison of their Operating Profit Margin (TTM) against their respective Capital Markets and Banks industry benchmarks.

Profitability at a Glance

SymbolARESNU
Return on Equity (TTM)13.30%27.49%
Return on Assets (TTM)1.85%4.27%
Net Profit Margin (TTM)9.94%17.90%
Operating Profit Margin (TTM)17.40%24.64%
Gross Profit Margin (TTM)--43.42%

Financial Strength

Current Ratio (MRQ)

ARES

0.31

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

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

NU

0.18

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

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

ARES vs. NU: A comparison of their Current Ratio (MRQ) against their respective Capital Markets and Banks industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ARES

2.93

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

NU

4.18

Banks Industry

Max
4.75
Q3
2.62
Median
1.02
Q1
0.39
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.

ARES vs. NU: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Capital Markets and Banks industry benchmarks.

Interest Coverage Ratio (TTM)

ARES

--

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

NU

-0.91

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

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

ARES vs. NU: A comparison of their Interest Coverage Ratio (TTM) against their respective Capital Markets and Banks industry benchmarks.

Financial Strength at a Glance

SymbolARESNU
Current Ratio (MRQ)0.310.18
Quick Ratio (MRQ)0.310.18
Debt-to-Equity Ratio (MRQ)2.934.18
Interest Coverage Ratio (TTM)---0.91

Growth

Revenue Growth

ARES vs. NU: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ARES vs. NU: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ARES

4.01%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

ARES’s Dividend Yield of 4.01% is consistent with its peers in the Capital Markets industry, providing a dividend return that is standard for its sector.

NU

0.00%

Banks Industry

Max
10.27%
Q3
5.83%
Median
3.81%
Q1
2.50%
Min
0.00%

NU currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ARES vs. NU: A comparison of their Dividend Yield (TTM) against their respective Capital Markets and Banks industry benchmarks.

Dividend Payout Ratio (TTM)

ARES

323.31%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

At 323.31%, ARES’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Capital Markets industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

NU

0.00%

Banks Industry

Max
147.07%
Q3
80.55%
Median
54.40%
Q1
35.71%
Min
0.00%

NU has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ARES vs. NU: A comparison of their Dividend Payout Ratio (TTM) against their respective Capital Markets and Banks industry benchmarks.

Dividend at a Glance

SymbolARESNU
Dividend Yield (TTM)4.01%0.00%
Dividend Payout Ratio (TTM)323.31%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ARES

80.55

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

At 80.55, ARES’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Capital Markets industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

NU

28.53

Banks Industry

Max
20.05
Q3
12.65
Median
10.21
Q1
7.54
Min
2.74

At 28.53, NU’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Banks industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ARES vs. NU: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Capital Markets and Banks industry benchmarks.

Price-to-Sales Ratio (TTM)

ARES

8.01

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

ARES’s P/S Ratio of 8.01 is in the upper echelon for the Capital Markets industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

NU

5.11

Banks Industry

Max
5.06
Q3
2.98
Median
2.24
Q1
1.59
Min
0.45

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

ARES vs. NU: A comparison of their Price-to-Sales Ratio (TTM) against their respective Capital Markets and Banks industry benchmarks.

Price-to-Book Ratio (MRQ)

ARES

12.97

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

At 12.97, ARES’s P/B Ratio is at an extreme premium to the Capital Markets 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.

NU

6.90

Banks Industry

Max
2.18
Q3
1.36
Median
1.09
Q1
0.81
Min
0.20

At 6.90, NU’s P/B Ratio is at an extreme premium to the Banks 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. NU: A comparison of their Price-to-Book Ratio (MRQ) against their respective Capital Markets and Banks industry benchmarks.

Valuation at a Glance

SymbolARESNU
Price-to-Earnings Ratio (TTM)80.5528.53
Price-to-Sales Ratio (TTM)8.015.11
Price-to-Book Ratio (MRQ)12.976.90
Price-to-Free Cash Flow Ratio (TTM)9.7213.78