ARES vs. SOFI: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARES and SOFI, 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
ARES dominates in value with a market cap of 34.18 billion USD, eclipsing SOFI’s 14.15 billion USD by roughly 2.42×.
With betas of 1.42 for ARES and 1.85 for SOFI, both show similar volatility profiles relative to the overall market.
| Symbol | ARES | SOFI |
|---|---|---|
| Company Name | Ares Management Corporation | SoFi Technologies, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Financial - Credit Services |
| CEO | Mr. Michael J. Arougheti | Mr. Anthony J. Noto |
| Price | 158.98 USD | 12.8 USD |
| Market Cap | 34.18 billion USD | 14.15 billion USD |
| Beta | 1.42 | 1.85 |
| Exchange | NYSE | NASDAQ |
| IPO Date | May 2, 2014 | January 4, 2021 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ARES and SOFI 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
The section examines key financial ratios to assess the valuation of ARES and SOFI based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- SOFI reports a negative Price-to-Free Cash Flow ratio of -7.00, showing a cash flow shortfall that could threaten its operational sustainability, while ARES at 6.22 maintains positive cash flow.
| Symbol | ARES | SOFI |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 64.72 | 29.17 |
| Forward PEG Ratio (TTM) | 2.92 | 0.43 |
| Price-to-Sales Ratio (P/S, TTM) | 6.95 | 5.10 |
| Price-to-Book Ratio (P/B, TTM) | 7.47 | 2.10 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.22 | -7.00 |
| EV-to-EBITDA (TTM) | 20.91 | 38.85 |
| EV-to-Sales (TTM) | 6.97 | 5.48 |
| EV-to-Free Cash Flow (TTM) | 6.23 | -7.52 |
Dividend Comparison
ARES delivers a 2.46% dividend yield, blending income with growth, whereas SOFI appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.
| Symbol | ARES | SOFI |
|---|---|---|
| Dividend Yield (TTM) | 2.46% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARES and SOFI, 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 0.00, both ARES and SOFI have less current assets than short-term liabilities, which could strain their working capital and force reliance on additional financing.
- SOFI posts a quick ratio of 0.00, indicating limited coverage of short-term debts from its most liquid assets—while ARES at 0.90 enjoys stronger liquidity resilience.
- SOFI’s low interest coverage (0.29) means it doesn't cover interest from operating earnings. ARES (at 1.95) meets its interest obligations.
| Symbol | ARES | SOFI |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 0.00 |
| Quick Ratio (TTM) | 0.90 | 0.00 |
| Debt-to-Equity Ratio (TTM) | 0.15 | 0.47 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.08 |
| Interest Coverage Ratio (TTM) | 1.95 | 0.29 |