ARES vs. PRS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARES and PRS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ARES’s market capitalization stands at 38.26 billion USD, while PRS’s is 38.45 billion USD, indicating their market valuations are broadly comparable.
With betas of 1.40 for ARES and 1.05 for PRS, both stocks show similar sensitivity to overall market movements.
| Symbol | ARES | PRS |
|---|---|---|
| Company Name | Ares Management Corporation | Prudential Financial, Inc. 5.62 |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Insurance - Life |
| CEO | Michael J. Arougheti | None |
| Price | 177.96 USD | 24.025 USD |
| Market Cap | 38.26 billion USD | 38.45 billion USD |
| Beta | 1.40 | 1.05 |
| Exchange | NYSE | NYSE |
| IPO Date | May 2, 2014 | August 22, 2018 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARES and PRS 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.
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.
PRS
-18.56%
Insurance - Life Industry
- Max
- 23.38%
- Q3
- 14.56%
- Median
- 11.23%
- Q1
- 1.67%
- Min
- -5.23%
PRS has a negative Return on Equity of -18.56%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
PRS
17.93%
Insurance - Life Industry
- Max
- 6.30%
- Q3
- 3.33%
- Median
- 2.16%
- Q1
- 0.68%
- Min
- -0.10%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Life industry.
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.
PRS
3.80%
Insurance - Life Industry
- Max
- 21.20%
- Q3
- 11.59%
- Median
- 7.10%
- Q1
- 3.79%
- Min
- 2.14%
PRS’s Net Profit Margin of 3.80% is aligned with the median group of its peers in the Insurance - Life industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
PRS
14.90%
Insurance - Life Industry
- Max
- 38.96%
- Q3
- 37.28%
- Median
- 14.06%
- Q1
- 8.95%
- Min
- -1.68%
In the Insurance - Life industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | ARES | PRS |
|---|---|---|
| Return on Equity (TTM) | 17.03% | -18.56% |
| Return on Assets (TTM) | 1.89% | 0.31% |
| Return on Invested Capital (TTM) | 15.74% | 17.93% |
| Net Profit Margin (TTM) | 10.46% | 3.80% |
| Operating Profit Margin (TTM) | 27.62% | 14.90% |
| Gross Profit Margin (TTM) | 60.51% | 100.95% |
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.
PRS
3.15
Insurance - Life Industry
- Max
- 843.97
- Q3
- 821.68
- Median
- 6.06
- Q1
- 3.15
- Min
- 0.47
PRS’s Current Ratio of 3.15 aligns with the median group of the Insurance - Life industry, indicating that its short-term liquidity is in line with its sector peers.
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.
PRS
10.37
Insurance - Life Industry
- Max
- 0.86
- Q3
- 0.83
- Median
- 0.55
- Q1
- 0.37
- Min
- 0.27
With a Debt-to-Equity Ratio of 10.37, PRS operates with exceptionally high leverage compared to the Insurance - Life industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
PRS
--
Insurance - Life Industry
- Max
- 37.82
- Q3
- 19.50
- Median
- 6.25
- Q1
- 2.29
- Min
- -0.76
Interest Coverage Ratio data for PRS is currently unavailable.
Financial Strength at a Glance
| Symbol | ARES | PRS |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 3.15 |
| Quick Ratio (TTM) | 0.90 | 3.15 |
| Debt-to-Equity Ratio (TTM) | 0.15 | 10.37 |
| Debt-to-Asset Ratio (TTM) | 0.03 | 0.03 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.04 | 3.52 |
| Interest Coverage Ratio (TTM) | 1.95 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARES and PRS. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
PRS
5.85%
Insurance - Life Industry
- Max
- 10.36%
- Q3
- 4.76%
- Median
- 2.40%
- Q1
- 1.51%
- Min
- 0.00%
With a Dividend Yield of 5.85%, PRS offers a more attractive income stream than most of its peers in the Insurance - Life industry, signaling a strong commitment to shareholder returns.
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.
PRS
82.85%
Insurance - Life Industry
- Max
- 203.94%
- Q3
- 64.38%
- Median
- 29.88%
- Q1
- 19.14%
- Min
- 0.00%
PRS’s Dividend Payout Ratio of 82.85% is in the upper quartile for the Insurance - Life industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ARES | PRS |
|---|---|---|
| Dividend Yield (TTM) | 2.30% | 5.85% |
| Dividend Payout Ratio (TTM) | 323.36% | 82.85% |
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.
PRS
3.76
Insurance - Life Industry
- Max
- 17.82
- Q3
- 16.08
- Median
- 12.43
- Q1
- 7.33
- Min
- 3.69
In the lower quartile for the Insurance - Life industry, PRS’s P/E Ratio of 3.76 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
PRS
0.50
Insurance - Life Industry
- Max
- 3.81
- Q3
- 1.95
- Median
- 0.97
- Q1
- 0.53
- Min
- 0.24
In the lower quartile for the Insurance - Life industry, PRS’s Forward PEG Ratio of 0.50 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
PRS
0.64
Insurance - Life Industry
- Max
- 3.84
- Q3
- 2.89
- Median
- 1.06
- Q1
- 0.63
- Min
- 0.31
PRS’s P/S Ratio of 0.64 aligns with the market consensus for the Insurance - Life industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
PRS
4.26
Insurance - Life Industry
- Max
- 3.87
- Q3
- 2.13
- Median
- 1.49
- Q1
- 0.95
- Min
- 0.38
At 4.26, PRS’s P/B Ratio is at an extreme premium to the Insurance - Life 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.
Valuation at a Glance
| Symbol | ARES | PRS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 72.45 | 3.76 |
| Forward PEG Ratio (TTM) | 3.26 | 0.50 |
| Price-to-Sales Ratio (P/S, TTM) | 7.78 | 0.64 |
| Price-to-Book Ratio (P/B, TTM) | 8.36 | 4.26 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.96 | 49.62 |
| EV-to-EBITDA (TTM) | 23.40 | 31.27 |
| EV-to-Sales (TTM) | 7.80 | 0.72 |