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

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

Company Profile

SymbolARESRNR
Company NameAres Management CorporationRenaissanceRe Holdings Ltd.
CountryUnited StatesBermuda
GICS SectorFinancialsFinancials
GICS IndustryCapital MarketsInsurance
Market Capitalization58.46 billion USD11.67 billion USD
ExchangeNYSENYSE
Listing DateMay 2, 2014July 27, 1995
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolARESRNR
5-Day Price Return-6.05%2.38%
13-Week Price Return6.10%-0.02%
26-Week Price Return-2.96%6.28%
52-Week Price Return23.76%1.03%
Month-to-Date Return-3.56%1.77%
Year-to-Date Return1.07%-0.31%
10-Day Avg. Volume1.27M0.29M
3-Month Avg. Volume1.51M0.44M
3-Month Volatility25.97%21.16%
Beta1.510.28

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.

RNR

18.60%

Insurance Industry

Max
29.03%
Q3
18.11%
Median
13.90%
Q1
10.42%
Min
-0.64%

In the upper quartile for the Insurance industry, RNR’s Return on Equity of 18.60% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ARES vs. RNR: A comparison of their Return on Equity (TTM) against their respective Capital Markets and Insurance 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.

RNR

15.97%

Insurance Industry

Max
26.78%
Q3
14.06%
Median
9.15%
Q1
5.48%
Min
-7.05%

A Net Profit Margin of 15.97% places RNR in the upper quartile for the Insurance industry, signifying strong profitability and more effective cost management than most of its peers.

ARES vs. RNR: A comparison of their Net Profit Margin (TTM) against their respective Capital Markets and Insurance 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.

RNR

20.72%

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.

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

Profitability at a Glance

SymbolARESRNR
Return on Equity (TTM)13.30%18.60%
Return on Assets (TTM)1.85%3.77%
Net Profit Margin (TTM)9.94%15.97%
Operating Profit Margin (TTM)17.40%20.72%
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.

RNR

0.57

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.

ARES vs. RNR: A comparison of their Current Ratio (MRQ) against their respective Capital Markets and Insurance 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.

RNR

0.21

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.

ARES vs. RNR: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Capital Markets and Insurance 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.

RNR

11.16

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.

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

Financial Strength at a Glance

SymbolARESRNR
Current Ratio (MRQ)0.310.57
Quick Ratio (MRQ)0.310.57
Debt-to-Equity Ratio (MRQ)2.930.21
Interest Coverage Ratio (TTM)--11.16

Growth

Revenue Growth

ARES vs. RNR: 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. RNR: 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.

RNR

0.99%

Insurance Industry

Max
8.23%
Q3
4.54%
Median
3.42%
Q1
1.97%
Min
0.00%

RNR’s Dividend Yield of 0.99% 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.

ARES vs. RNR: A comparison of their Dividend Yield (TTM) against their respective Capital Markets and Insurance 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.

RNR

3.90%

Insurance Industry

Max
168.02%
Q3
85.57%
Median
50.71%
Q1
22.04%
Min
0.00%

RNR’s Dividend Payout Ratio of 3.90% is in the lower quartile for the Insurance industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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

Dividend at a Glance

SymbolARESRNR
Dividend Yield (TTM)4.01%0.99%
Dividend Payout Ratio (TTM)323.31%3.90%

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.

RNR

5.77

Insurance Industry

Max
28.91
Q3
17.76
Median
13.63
Q1
10.02
Min
2.89

In the lower quartile for the Insurance industry, RNR’s P/E Ratio of 5.77 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ARES vs. RNR: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Capital Markets and Insurance 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.

RNR

0.92

Insurance Industry

Max
3.72
Q3
1.98
Median
1.23
Q1
0.81
Min
0.23

RNR’s P/S Ratio of 0.92 aligns with the market consensus for the Insurance industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ARES vs. RNR: A comparison of their Price-to-Sales Ratio (TTM) against their respective Capital Markets and Insurance 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.

RNR

1.09

Insurance Industry

Max
4.37
Q3
2.48
Median
1.68
Q1
1.19
Min
0.19

RNR’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.

ARES vs. RNR: A comparison of their Price-to-Book Ratio (MRQ) against their respective Capital Markets and Insurance industry benchmarks.

Valuation at a Glance

SymbolARESRNR
Price-to-Earnings Ratio (TTM)80.555.77
Price-to-Sales Ratio (TTM)8.010.92
Price-to-Book Ratio (MRQ)12.971.09
Price-to-Free Cash Flow Ratio (TTM)9.722.96