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ARES vs. PYPL: Ares Management vs. PayPal Stock Comparison

How do Ares Management (ARES) and PayPal (PYPL) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Ares Management (ARES) and PayPal (PYPL) both fall under the Financial Services industry group, but ARES is classified in Capital Markets while PYPL is classified in Financial Services.

Company profile comparison for Ares Management (ARES) and PayPal (PYPL)
Profile ItemARESPYPL
NameAres Management Corp. Class A Common StockPayPal Holdings, Inc.
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryCapital MarketsFinancial Services
GICS Sub-IndustryAsset Management & Custody BanksTransaction & Payment Processing Services
Market Capitalization44.45 billion USD49.21 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateMay 2, 2014July 6, 2015
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ARES
PYPL
GSPC
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Ares Management (ARES) vs. PayPal (PYPL), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Ares Management (ARES) and PayPal (PYPL). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Ares Management (ARES) and PayPal (PYPL). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Ares Management (ARES) and PayPal (PYPL)
MetricARESPYPL
Total Return (1Y)-5.55%-7.44%
Total Return (3Y, Annualized)13.18%4.14%
Total Return (5Y, Annualized)13.38%-21.48%

Risk Profile

Drawdown History

ARES
PYPL
GSPC
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Ares Management (ARES) vs. PayPal (PYPL), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Ares Management (ARES) and PayPal (PYPL). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Ares Management (ARES) and PayPal (PYPL)
MetricARESPYPL
Volatility (1Y, Annualized)44.09%42.40%
Beta (5Y)1.451.28
Max Drawdown (5Y)-49.97%-81.84%
Avg. Volume (3M)2.20M11.78M

Risk-Adjusted Performance

Risk-Return Positioning

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ARES and PYPL are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Ares Management (ARES) and PayPal (PYPL)
MetricARESPYPL
Sharpe Ratio (1Y)-0.22-0.28
Sortino Ratio (1Y)-0.31-0.37

Profitability

ROE (TTM)

Capital efficiency shows on one side only: PayPal (PYPL) earns 23.83% on shareholders’ equity, ranked against its industry; Ares Management (ARES) has no ROE this period.

ARES

Financial Services industry group

--

Max
44.78%
Q3
21.85%
Median
12.91%
Q1
4.48%
Min
-18.71%
ARES
--

PYPL

Financial Services industry group

23.83%

Max
44.78%
PYPL
23.83%
Q3
21.85%
Median
12.91%
Q1
4.48%
Min
-18.71%
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Ares Management (ARES) vs. PayPal (PYPL): ARES does not report ROE, so it has no value marker; PYPL is benchmarked against the Financial Services industry group.

Net Margin (TTM)

Both Ares Management (ARES) at 8.69% and PayPal (PYPL) at 13.78% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

ARES

Financial Services industry group

8.69%

Max
62.84%
Q3
28.05%
Median
15.36%
ARES
8.69%
Q1
4.82%
Min
-28.52%

PYPL

Financial Services industry group

13.78%

Max
62.84%
Q3
28.05%
Median
15.36%
PYPL
13.78%
Q1
4.82%
Min
-28.52%
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Ares Management (ARES) vs. PayPal (PYPL): A comparison of their net margin against the Financial Services industry group benchmark.

Operating Margin (TTM)

PayPal (PYPL) at 18.41% runs core operations around its industry’s norm, while Ares Management (ARES) at 2.89% operates in the bottom quartile.

ARES

Financial Services industry group

2.89%

Max
107.33%
Q3
55.90%
Median
30.09%
Q1
14.60%
ARES
2.89%
Min
-44.34%

PYPL

Financial Services industry group

18.41%

Max
107.33%
Q3
55.90%
Median
30.09%
PYPL
18.41%
Q1
14.60%
Min
-44.34%
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Ares Management (ARES) vs. PayPal (PYPL): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Ares Management (ARES) and PayPal (PYPL)
MetricARESPYPL
ROE (TTM)--23.83%
ROA (TTM)--4.70%
Net Margin (TTM)8.69%13.78%
Operating Margin (TTM)2.89%18.41%
Gross Margin (TTM)----

Growth

Revenue Growth

Ares Management (ARES) at 44.19% sits in the top revenue growth quartile, while PayPal (PYPL) at 4.32% is closer to the peer norm — faster top-line expansion for ARES.

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Ares Management (ARES) vs. PayPal (PYPL): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Ares Management (ARES) at -16.67% and PayPal (PYPL) at 35.59% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Ares Management (ARES) vs. PayPal (PYPL): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Ares Management (ARES) and PayPal (PYPL)
MetricARESPYPL
Revenue Growth (YoY)44.19%4.32%
Revenue Growth (3Y CAGR)22.39%6.43%
EPS Growth (YoY)-16.67%35.59%
EPS Growth (3Y CAGR)25.02%37.30%

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Ares Management (ARES) in Financial Services and PayPal (PYPL) 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 / Equity (MRQ)

debt-to-equity ratio is set aside for both: Ares Management (ARES) in Financial Services and PayPal (PYPL) 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

Financial strength metrics for Ares Management (ARES) and PayPal (PYPL)
MetricARESPYPL
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Both Ares Management (ARES) at 3.87% and PayPal (PYPL) at 0.95% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

ARES

Financial Services industry group

3.87%

Max
9.77%
Q3
3.92%
ARES
3.87%
Median
1.09%
Q1
0.00%
Min
0.00%

PYPL

Financial Services industry group

0.95%

Max
9.77%
Q3
3.92%
Median
1.09%
PYPL
0.95%
Q1
0.00%
Min
0.00%
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Ares Management (ARES) vs. PayPal (PYPL): A comparison of their dividend yield against the Financial Services industry group benchmark.

Dividend Payout Ratio (TTM)

Ares Management (ARES) reports payout ratio above 100% at 423.77%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile PayPal (PYPL) reports 10.69%, ranking against industry peers normally.

ARES

Financial Services industry group

423.77%

ARES
423.77%
Max
241.07%
Q3
97.36%
Median
25.77%
Q1
0.00%
Min
0.00%

PYPL

Financial Services industry group

10.69%

Max
241.07%
Q3
97.36%
Median
25.77%
PYPL
10.69%
Q1
0.00%
Min
0.00%
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Ares Management (ARES) vs. PayPal (PYPL): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for Ares Management (ARES) and PayPal (PYPL)
MetricARESPYPL
Dividend Yield (TTM)3.87%0.95%
Dividend Payout Ratio (TTM)423.77%10.69%

Valuation

P/E Ratio (TTM)

PayPal (PYPL) at 11.31 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.

ARES

Financial Services industry group

109.82

ARES
109.82
Max
45.85
Q3
24.64
Median
15.37
Q1
9.68
Min
0.16

PYPL

Financial Services industry group

11.31

Max
45.85
Q3
24.64
Median
15.37
PYPL
11.31
Q1
9.68
Min
0.16
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Ares Management (ARES) vs. PayPal (PYPL): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

PayPal (PYPL) at 1.43 is priced about in line with its industry on P/S ratio, while Ares Management (ARES) at 8.92 sits in the pricier quartile — ARES costs more per dollar of sales.

ARES

Financial Services industry group

8.92

Max
9.23
ARES
8.92
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55

PYPL

Financial Services industry group

1.43

Max
9.23
Q3
4.57
Median
2.72
PYPL
1.43
Q1
1.28
Min
-0.55
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Ares Management (ARES) vs. PayPal (PYPL): A comparison of their P/S ratio against the Financial Services industry group benchmark.

P/B Ratio (MRQ)

PayPal (PYPL) at 2.55 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.

ARES

Financial Services industry group

12.15

ARES
12.15
Max
7.79
Q3
3.63
Median
1.57
Q1
0.81
Min
-0.39

PYPL

Financial Services industry group

2.55

Max
7.79
Q3
3.63
PYPL
2.55
Median
1.57
Q1
0.81
Min
-0.39
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Ares Management (ARES) vs. PayPal (PYPL): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Ares Management (ARES) and PayPal (PYPL)
MetricARESPYPL
P/E Ratio (TTM)109.8211.31
P/S Ratio (TTM)8.921.43
P/B Ratio (MRQ)12.152.55
Free Cash Flow Yield (TTM)----