ARES vs. PYPL: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARES and PYPL, 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
PYPL’s market capitalization of 68.82 billion USD is significantly greater than ARES’s 35.46 billion USD, highlighting its more substantial market valuation.
With betas of 1.42 for ARES and 1.51 for PYPL, both stocks show similar sensitivity to overall market movements.
| Symbol | ARES | PYPL |
|---|---|---|
| Company Name | Ares Management Corporation | PayPal Holdings, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Financial - Credit Services |
| CEO | Mr. Michael J. Arougheti | Mr. Alex Chriss |
| Price | 164.93 USD | 70.76 USD |
| Market Cap | 35.46 billion USD | 68.82 billion USD |
| Beta | 1.42 | 1.51 |
| Exchange | NYSE | NASDAQ |
| IPO Date | May 2, 2014 | July 6, 2015 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ARES and PYPL over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
This section compares the market valuation of ARES and PYPL. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- ARES’s Price-to-Earnings (P/E) ratio of 67.15 is very high. This often means that its current market price reflects high investor confidence in its future earnings potential, but it could also suggest the stock is expensive relative to its current earnings power.
- ARES’s Price-to-Book (P/B) ratio of 7.75 is very high. This often indicates that the market values the company significantly above its net asset value, usually reflecting strong profitability, valuable intangible assets (like brand or patents), or high expectations for future growth.
| Symbol | ARES | PYPL |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 67.15 | 15.35 |
| Forward PEG Ratio (TTM) | 3.03 | 1.34 |
| Price-to-Sales Ratio (P/S, TTM) | 7.21 | 2.16 |
| Price-to-Book Ratio (P/B, TTM) | 7.75 | 3.44 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.45 | 11.53 |
| EV-to-EBITDA (TTM) | 21.69 | 10.32 |
| EV-to-Sales (TTM) | 7.23 | 2.28 |
| EV-to-Free Cash Flow (TTM) | 6.46 | 12.20 |
Dividend Comparison
ARES provides a 2.37% dividend yield, potentially offering a blend of income and growth, whereas PYPL currently does not pay a dividend, possibly retaining profits to fund operations or growth initiatives.
| Symbol | ARES | PYPL |
|---|---|---|
| Dividend Yield (TTM) | 2.37% | 0.00% |
Financial Strength Metrics Comparison
Explore the financial strength details for ARES and PYPL in the table below.
| Symbol | ARES | PYPL |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 1.30 |
| Quick Ratio (TTM) | 0.90 | 1.30 |
| Debt-to-Equity Ratio (TTM) | 0.15 | 0.56 |
| Interest Coverage Ratio (TTM) | 1.95 | 19.52 |