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ARES vs. SCHW: Ares Management vs. Charles Schwab Stock Comparison

How do Ares Management (ARES) and Charles Schwab (SCHW) 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 Charles Schwab (SCHW) both belong to the Capital Markets industry, though ARES is classified under Asset Management & Custody Banks while SCHW falls under Investment Banking & Brokerage.

Company profile comparison for Ares Management (ARES) and Charles Schwab (SCHW)
Profile ItemARESSCHW
NameAres Management Corp. Class A Common StockThe Charles Schwab Corporation
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryCapital MarketsCapital Markets
GICS Sub-IndustryAsset Management & Custody BanksInvestment Banking & Brokerage
Market Capitalization44.45 billion USD158.22 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMay 2, 2014September 22, 1987
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ARES
SCHW
GSPC
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Ares Management (ARES) vs. Charles Schwab (SCHW), 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 Charles Schwab (SCHW). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Ares Management (ARES) and Charles Schwab (SCHW)
MetricARESSCHW
Total Return (1Y)-5.55%-0.80%
Total Return (3Y, Annualized)13.18%21.35%
Total Return (5Y, Annualized)13.38%4.31%

Risk Profile

Drawdown History

ARES
SCHW
GSPC
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Ares Management (ARES) vs. Charles Schwab (SCHW), 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 Charles Schwab (SCHW). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Ares Management (ARES) and Charles Schwab (SCHW)
MetricARESSCHW
Volatility (1Y, Annualized)44.09%26.01%
Beta (5Y)1.450.74
Max Drawdown (5Y)-49.97%-49.70%
Avg. Volume (3M)2.20M8.22M

Risk-Adjusted Performance

Risk-Return Positioning

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ARES and SCHW 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 Charles Schwab (SCHW)
MetricARESSCHW
Sharpe Ratio (1Y)-0.22-0.20
Sortino Ratio (1Y)-0.31-0.26

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Charles Schwab (SCHW) earns 21.12% 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
--

SCHW

Financial Services industry group

21.12%

Max
44.78%
Q3
21.85%
SCHW
21.12%
Median
12.91%
Q1
4.48%
Min
-18.71%
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Ares Management (ARES) vs. Charles Schwab (SCHW): ARES does not report ROE, so it has no value marker; SCHW is benchmarked against the Financial Services industry group.

Net Margin (TTM)

Charles Schwab (SCHW) at 39.33% retains a top-quartile share of revenue as profit, ahead of Ares Management (ARES) at 8.69%, which keeps about the industry-typical share.

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%

SCHW

Financial Services industry group

39.33%

Max
62.84%
SCHW
39.33%
Q3
28.05%
Median
15.36%
Q1
4.82%
Min
-28.52%
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Ares Management (ARES) vs. Charles Schwab (SCHW): A comparison of their net margin against the Financial Services industry group benchmark.

Operating Margin (TTM)

Charles Schwab (SCHW) at 52.67% 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%

SCHW

Financial Services industry group

52.67%

Max
107.33%
Q3
55.90%
SCHW
52.67%
Median
30.09%
Q1
14.60%
Min
-44.34%
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Ares Management (ARES) vs. Charles Schwab (SCHW): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for Ares Management (ARES) and Charles Schwab (SCHW)
MetricARESSCHW
ROE (TTM)--21.12%
ROA (TTM)--2.16%
Net Margin (TTM)8.69%39.33%
Operating Margin (TTM)2.89%52.67%
Gross Margin (TTM)----

Growth

Revenue Growth

Ares Management (ARES) at 44.19% sits in the top revenue growth quartile, while Charles Schwab (SCHW) at 22.01% is closer to the peer norm — faster top-line expansion for ARES.

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Ares Management (ARES) vs. Charles Schwab (SCHW): A comparison of their Revenue Growth across different time periods.

EPS Growth

Charles Schwab (SCHW) at 55.52% sits in the top EPS growth quartile, while Ares Management (ARES) at -16.67% is closer to the peer norm — faster per-share earnings growth for SCHW.

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Ares Management (ARES) vs. Charles Schwab (SCHW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Ares Management (ARES) and Charles Schwab (SCHW)
MetricARESSCHW
Revenue Growth (YoY)44.19%22.01%
Revenue Growth (3Y CAGR)22.39%4.83%
EPS Growth (YoY)-16.67%55.52%
EPS Growth (3Y CAGR)25.02%9.93%

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Ares Management (ARES) in Financial Services and Charles Schwab (SCHW) 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 Charles Schwab (SCHW) 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 Charles Schwab (SCHW)
MetricARESSCHW
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Both Ares Management (ARES) at 3.87% and Charles Schwab (SCHW) at 1.33% 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%

SCHW

Financial Services industry group

1.33%

Max
9.77%
Q3
3.92%
SCHW
1.33%
Median
1.09%
Q1
0.00%
Min
0.00%
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Ares Management (ARES) vs. Charles Schwab (SCHW): 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 Charles Schwab (SCHW) reports 21.03%, 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%

SCHW

Financial Services industry group

21.03%

Max
241.07%
Q3
97.36%
Median
25.77%
SCHW
21.03%
Q1
0.00%
Min
0.00%
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Ares Management (ARES) vs. Charles Schwab (SCHW): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for Ares Management (ARES) and Charles Schwab (SCHW)
MetricARESSCHW
Dividend Yield (TTM)3.87%1.33%
Dividend Payout Ratio (TTM)423.77%21.03%

Valuation

P/E Ratio (TTM)

Charles Schwab (SCHW) at 15.64 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

SCHW

Financial Services industry group

15.64

Max
45.85
Q3
24.64
SCHW
15.64
Median
15.37
Q1
9.68
Min
0.16
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Ares Management (ARES) vs. Charles Schwab (SCHW): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

Both Ares Management (ARES) at 8.92 and Charles Schwab (SCHW) at 5.85 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

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

SCHW

Financial Services industry group

5.85

Max
9.23
SCHW
5.85
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55
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Ares Management (ARES) vs. Charles Schwab (SCHW): A comparison of their P/S ratio against the Financial Services industry group benchmark.

P/B Ratio (MRQ)

Charles Schwab (SCHW) at 3.08 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

SCHW

Financial Services industry group

3.08

Max
7.79
Q3
3.63
SCHW
3.08
Median
1.57
Q1
0.81
Min
-0.39
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Ares Management (ARES) vs. Charles Schwab (SCHW): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for Ares Management (ARES) and Charles Schwab (SCHW)
MetricARESSCHW
P/E Ratio (TTM)109.8215.64
P/S Ratio (TTM)8.925.85
P/B Ratio (MRQ)12.153.08
Free Cash Flow Yield (TTM)----