ARES vs. TFC: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARES and TFC, 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
TFC stands out with 51.23 billion USD in market value—about 1.50× ARES’s market cap of 34.18 billion USD.
ARES’s beta of 1.42 points to much larger expected swings compared to TFC’s calmer 0.81, suggesting both higher upside and downside potential.
| Symbol | ARES | TFC |
|---|---|---|
| Company Name | Ares Management Corporation | Truist Financial Corporation |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Banks - Regional |
| CEO | Mr. Michael J. Arougheti | Mr. William Henry Rogers Jr. |
| Price | 158.98 USD | 39.12 USD |
| Market Cap | 34.18 billion USD | 51.23 billion USD |
| Beta | 1.42 | 0.81 |
| Exchange | NYSE | NYSE |
| IPO Date | May 2, 2014 | March 18, 1980 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of ARES and TFC 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 TFC, please refer to the table below.
| Symbol | ARES | TFC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 64.72 | 10.48 |
| Forward PEG Ratio (TTM) | 2.92 | 0.85 |
| Price-to-Sales Ratio (P/S, TTM) | 6.95 | 3.83 |
| Price-to-Book Ratio (P/B, TTM) | 7.47 | 0.79 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.22 | 15.43 |
| EV-to-EBITDA (TTM) | 20.91 | -48.02 |
| EV-to-Sales (TTM) | 6.97 | 8.01 |
| EV-to-Free Cash Flow (TTM) | 6.23 | 32.22 |
Dividend Comparison
TFC stands out with a 5.32% dividend yield—around 116% above ARES’s 2.46%—highlighting its emphasis on generous payouts.
| Symbol | ARES | TFC |
|---|---|---|
| Dividend Yield (TTM) | 2.46% | 5.32% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARES and TFC, 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 TFC have less current assets than short-term liabilities, which could strain their working capital and force reliance on additional financing.
- TFC 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.
- ARES meets its interest obligations (ratio 1.95). In stark contrast, TFC’s negative ratio (-0.05) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.
| Symbol | ARES | TFC |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 0.00 |
| Quick Ratio (TTM) | 0.90 | 0.00 |
| Debt-to-Equity Ratio (TTM) | 0.15 | 0.86 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.10 |
| Interest Coverage Ratio (TTM) | 1.95 | -0.05 |