ARES vs. RNR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARES and RNR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ARES’s market capitalization of 38.26 billion USD is substantially larger than RNR’s 11.72 billion USD, indicating a significant difference in their market valuations.
ARES’s beta of 1.40 points to significantly higher volatility compared to RNR (beta: 0.32), suggesting ARES has greater potential for both gains and losses relative to market movements.
| Symbol | ARES | RNR |
|---|---|---|
| Company Name | Ares Management Corporation | RenaissanceRe Holdings Ltd. |
| Country | US | BM |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Insurance - Reinsurance |
| CEO | Michael J. Arougheti | Kevin Joseph O'Donnell |
| Price | 177.96 USD | 240.9 USD |
| Market Cap | 38.26 billion USD | 11.72 billion USD |
| Beta | 1.40 | 0.32 |
| Exchange | NYSE | NYSE |
| IPO Date | May 2, 2014 | July 27, 1995 |
| ADR | No | No |
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.
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.
RNR
15.74%
Insurance - Reinsurance Industry
- Max
- 18.30%
- Q3
- 14.16%
- Median
- 8.39%
- Q1
- 7.08%
- Min
- 5.91%
In the upper quartile for the Insurance - Reinsurance industry, RNR’s Return on Equity of 15.74% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
RNR
78.41%
Insurance - Reinsurance Industry
- Max
- 126.30%
- Q3
- 60.66%
- Median
- 7.25%
- Q1
- 3.18%
- Min
- 0.62%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Reinsurance 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.
RNR
13.54%
Insurance - Reinsurance Industry
- Max
- 21.27%
- Q3
- 12.90%
- Median
- 9.40%
- Q1
- 5.62%
- Min
- 3.77%
A Net Profit Margin of 13.54% places RNR in the upper quartile for the Insurance - Reinsurance industry, signifying strong profitability and more effective cost management than most of its peers.
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.
RNR
17.83%
Insurance - Reinsurance Industry
- Max
- 17.83%
- Q3
- 15.41%
- Median
- 8.11%
- Q1
- 5.86%
- Min
- 4.12%
An Operating Profit Margin of 17.83% places RNR in the upper quartile for the Insurance - Reinsurance industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ARES | RNR |
|---|---|---|
| Return on Equity (TTM) | 17.03% | 15.74% |
| Return on Assets (TTM) | 1.89% | 3.11% |
| Return on Invested Capital (TTM) | 15.74% | 78.41% |
| Net Profit Margin (TTM) | 10.46% | 13.54% |
| Operating Profit Margin (TTM) | 27.62% | 17.83% |
| Gross Profit Margin (TTM) | 60.51% | 99.89% |
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.
RNR
--
Insurance - Reinsurance Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
Current Ratio data for RNR is currently unavailable.
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.
RNR
--
Insurance - Reinsurance Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
Debt-to-Equity Ratio data for RNR is currently unavailable.
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.
RNR
22.46
Insurance - Reinsurance Industry
- Max
- 22.46
- Q3
- 18.27
- Median
- 5.57
- Q1
- 4.93
- Min
- 3.41
RNR’s Interest Coverage Ratio of 22.46 is in the upper quartile for the Insurance - Reinsurance industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ARES | RNR |
|---|---|---|
| Current Ratio (TTM) | 0.90 | -- |
| Quick Ratio (TTM) | 0.90 | -- |
| Debt-to-Equity Ratio (TTM) | 0.15 | -- |
| Debt-to-Asset Ratio (TTM) | 0.03 | -- |
| Net Debt-to-EBITDA Ratio (TTM) | 0.04 | -0.68 |
| Interest Coverage Ratio (TTM) | 1.95 | 22.46 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARES and RNR. 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.
RNR
0.66%
Insurance - Reinsurance Industry
- Max
- 2.38%
- Q3
- 1.52%
- Median
- 0.33%
- Q1
- 0.00%
- Min
- 0.00%
RNR’s Dividend Yield of 0.66% is consistent with its peers in the Insurance - Reinsurance industry, providing a dividend return that is standard for its sector.
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.
RNR
6.92%
Insurance - Reinsurance Industry
- Max
- 40.35%
- Q3
- 23.76%
- Median
- 7.09%
- Q1
- 1.73%
- Min
- 0.00%
RNR’s Dividend Payout Ratio of 6.92% is within the typical range for the Insurance - Reinsurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ARES | RNR |
|---|---|---|
| Dividend Yield (TTM) | 2.30% | 0.66% |
| Dividend Payout Ratio (TTM) | 323.36% | 6.92% |
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.
RNR
7.37
Insurance - Reinsurance Industry
- Max
- 16.92
- Q3
- 16.06
- Median
- 12.86
- Q1
- 8.23
- Min
- 5.12
In the lower quartile for the Insurance - Reinsurance industry, RNR’s P/E Ratio of 7.37 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.
RNR
0.38
Insurance - Reinsurance Industry
- Max
- 1.52
- Q3
- 1.04
- Median
- 0.71
- Q1
- 0.38
- Min
- 0.20
In the lower quartile for the Insurance - Reinsurance industry, RNR’s Forward PEG Ratio of 0.38 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.
RNR
0.95
Insurance - Reinsurance Industry
- Max
- 1.18
- Q3
- 1.07
- Median
- 0.91
- Q1
- 0.83
- Min
- 0.62
The P/S Ratio is often not a primary valuation tool in the Insurance - Reinsurance industry.
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.
RNR
1.19
Insurance - Reinsurance Industry
- Max
- 1.19
- Q3
- 1.18
- Median
- 1.08
- Q1
- 0.93
- Min
- 0.73
RNR’s P/B Ratio of 1.19 is in the upper tier for the Insurance - Reinsurance industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ARES | RNR |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 72.45 | 7.37 |
| Forward PEG Ratio (TTM) | 3.26 | 0.38 |
| Price-to-Sales Ratio (P/S, TTM) | 7.78 | 0.95 |
| Price-to-Book Ratio (P/B, TTM) | 8.36 | 1.19 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.96 | 3.22 |
| EV-to-EBITDA (TTM) | 23.40 | 4.18 |
| EV-to-Sales (TTM) | 7.80 | 0.82 |