ARES vs. SCHW: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARES and SCHW, 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
SCHW stands out with 158.89 billion USD in market value—about 4.65× ARES’s market cap of 34.18 billion USD.
ARES’s beta of 1.42 points to much larger expected swings compared to SCHW’s calmer 0.90, suggesting both higher upside and downside potential.
| Symbol | ARES | SCHW |
|---|---|---|
| Company Name | Ares Management Corporation | The Charles Schwab Corporation |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Financial - Capital Markets |
| CEO | Mr. Michael J. Arougheti | Mr. Richard Andrew Wurster C.F.A., CFA, CMT |
| Price | 158.98 USD | 87.45 USD |
| Market Cap | 34.18 billion USD | 158.89 billion USD |
| Beta | 1.42 | 0.90 |
| Exchange | NYSE | NYSE |
| IPO Date | May 2, 2014 | September 22, 1987 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ARES and SCHW over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
For a detailed comparison of valuation metrics between ARES and SCHW, please refer to the table below.
| Symbol | ARES | SCHW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 64.72 | 24.49 |
| Forward PEG Ratio (TTM) | 2.92 | 1.55 |
| Price-to-Sales Ratio (P/S, TTM) | 6.95 | 6.06 |
| Price-to-Book Ratio (P/B, TTM) | 7.47 | 3.21 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.22 | 16.23 |
| EV-to-EBITDA (TTM) | 20.91 | 16.76 |
| EV-to-Sales (TTM) | 6.97 | 6.25 |
| EV-to-Free Cash Flow (TTM) | 6.23 | 16.73 |
Dividend Comparison
ARES’s dividend yield of 2.46% is about 107% higher than SCHW’s 1.19%, underscoring its stronger focus on returning cash to shareholders.
| Symbol | ARES | SCHW |
|---|---|---|
| Dividend Yield (TTM) | 2.46% | 1.19% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARES and SCHW, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- With current ratios of 0.90 and 0.52, both ARES and SCHW have less current assets than short-term liabilities, which could strain their working capital and force reliance on additional financing.
- SCHW posts a quick ratio of 0.52, indicating limited coverage of short-term debts from its most liquid assets—while ARES at 0.90 enjoys stronger liquidity resilience.
| Symbol | ARES | SCHW |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 0.52 |
| Quick Ratio (TTM) | 0.90 | 0.52 |
| Debt-to-Equity Ratio (TTM) | 0.15 | 0.81 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.09 |
| Interest Coverage Ratio (TTM) | 1.95 | 1.46 |