ARES vs. RGA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARES and RGA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ARES | RGA |
|---|---|---|
| Company Name | Ares Management Corporation | Reinsurance Group of America, Incorporated |
| Country | United States | United States |
| GICS Sector | Financials | Financials |
| GICS Industry | Capital Markets | Insurance |
| Market Capitalization | 58.46 billion USD | 12.72 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | May 2, 2014 | September 12, 2008 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ARES and RGA 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.
Historical Performance at a Glance
| Symbol | ARES | RGA |
|---|---|---|
| 5-Day Price Return | -6.05% | 1.68% |
| 13-Week Price Return | 6.10% | -8.25% |
| 26-Week Price Return | -2.96% | -5.92% |
| 52-Week Price Return | 23.76% | -7.77% |
| Month-to-Date Return | -3.56% | -0.03% |
| Year-to-Date Return | 1.07% | -9.94% |
| 10-Day Avg. Volume | 1.27M | 0.41M |
| 3-Month Avg. Volume | 1.51M | 0.42M |
| 3-Month Volatility | 25.97% | 26.32% |
| Beta | 1.51 | 0.63 |
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.
RGA
6.78%
Insurance Industry
- Max
- 29.03%
- Q3
- 18.11%
- Median
- 13.90%
- Q1
- 10.42%
- Min
- -0.64%
RGA’s Return on Equity of 6.78% is in the lower quartile for the Insurance industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
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.
RGA
3.54%
Insurance Industry
- Max
- 26.78%
- Q3
- 14.06%
- Median
- 9.15%
- Q1
- 5.48%
- Min
- -7.05%
Falling into the lower quartile for the Insurance industry, RGA’s Net Profit Margin of 3.54% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
RGA
6.65%
Insurance Industry
- Max
- 35.49%
- Q3
- 19.49%
- Median
- 14.35%
- Q1
- 8.53%
- Min
- -5.25%
In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | ARES | RGA |
|---|---|---|
| Return on Equity (TTM) | 13.30% | 6.78% |
| Return on Assets (TTM) | 1.85% | 0.62% |
| Net Profit Margin (TTM) | 9.94% | 3.54% |
| Operating Profit Margin (TTM) | 17.40% | 6.65% |
| Gross Profit Margin (TTM) | -- | -- |
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.
RGA
--
Insurance Industry
- Max
- 2.97
- Q3
- 1.33
- Median
- 0.55
- Q1
- 0.15
- Min
- 0.00
For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
RGA
0.48
Insurance Industry
- Max
- 1.25
- Q3
- 0.65
- Median
- 0.34
- Q1
- 0.22
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.
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.
RGA
4.70
Insurance Industry
- Max
- 43.68
- Q3
- 20.84
- Median
- 9.56
- Q1
- 3.34
- Min
- -5.73
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.
Financial Strength at a Glance
| Symbol | ARES | RGA |
|---|---|---|
| Current Ratio (MRQ) | 0.31 | -- |
| Quick Ratio (MRQ) | 0.31 | -- |
| Debt-to-Equity Ratio (MRQ) | 2.93 | 0.48 |
| Interest Coverage Ratio (TTM) | -- | 4.70 |
Growth
Revenue Growth
EPS Growth
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.
RGA
1.86%
Insurance Industry
- Max
- 8.23%
- Q3
- 4.54%
- Median
- 3.42%
- Q1
- 1.97%
- Min
- 0.00%
RGA’s Dividend Yield of 1.86% is in the lower quartile for the Insurance industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
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.
RGA
30.52%
Insurance Industry
- Max
- 168.02%
- Q3
- 85.57%
- Median
- 50.71%
- Q1
- 22.04%
- Min
- 0.00%
RGA’s Dividend Payout Ratio of 30.52% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ARES | RGA |
|---|---|---|
| Dividend Yield (TTM) | 4.01% | 1.86% |
| Dividend Payout Ratio (TTM) | 323.31% | 30.52% |
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.
RGA
16.43
Insurance Industry
- Max
- 28.91
- Q3
- 17.76
- Median
- 13.63
- Q1
- 10.02
- Min
- 2.89
RGA’s P/E Ratio of 16.43 is within the middle range for the Insurance industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
RGA
0.58
Insurance Industry
- Max
- 3.72
- Q3
- 1.98
- Median
- 1.23
- Q1
- 0.81
- Min
- 0.23
In the lower quartile for the Insurance industry, RGA’s P/S Ratio of 0.58 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
RGA
1.09
Insurance Industry
- Max
- 4.37
- Q3
- 2.48
- Median
- 1.68
- Q1
- 1.19
- Min
- 0.19
RGA’s P/B Ratio of 1.09 is in the lower quartile for the Insurance industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | ARES | RGA |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 80.55 | 16.43 |
| Price-to-Sales Ratio (TTM) | 8.01 | 0.58 |
| Price-to-Book Ratio (MRQ) | 12.97 | 1.09 |
| Price-to-Free Cash Flow Ratio (TTM) | 9.72 | 2.57 |