ARES vs. UPST: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARES and UPST, 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 UPST’s 7.02 billion USD, indicating a significant difference in their market valuations.
UPST carries a higher beta at 2.30, indicating it’s more sensitive to market moves, while ARES (beta: 1.40) exhibits greater stability.
| Symbol | ARES | UPST |
|---|---|---|
| Company Name | Ares Management Corporation | Upstart Holdings, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Financial - Credit Services |
| CEO | Michael J. Arougheti | David J. Girouard |
| Price | 177.96 USD | 73.82 USD |
| Market Cap | 38.26 billion USD | 7.02 billion USD |
| Beta | 1.40 | 2.30 |
| Exchange | NYSE | NASDAQ |
| IPO Date | May 2, 2014 | December 16, 2020 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARES and UPST 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.
UPST
-10.63%
Financial - Credit Services Industry
- Max
- 34.05%
- Q3
- 18.70%
- Median
- 10.57%
- Q1
- 3.55%
- Min
- -12.12%
UPST has a negative Return on Equity of -10.63%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
UPST
-4.85%
Financial - Credit Services Industry
- Max
- 68.11%
- Q3
- 32.26%
- Median
- 9.52%
- Q1
- 3.37%
- Min
- -7.03%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Credit Services 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.
UPST
-9.21%
Financial - Credit Services Industry
- Max
- 39.42%
- Q3
- 20.10%
- Median
- 12.91%
- Q1
- 5.82%
- Min
- -14.80%
UPST has a negative Net Profit Margin of -9.21%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
UPST
-14.94%
Financial - Credit Services Industry
- Max
- 77.26%
- Q3
- 42.86%
- Median
- 17.99%
- Q1
- 10.82%
- Min
- -14.94%
UPST has a negative Operating Profit Margin of -14.94%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | ARES | UPST |
|---|---|---|
| Return on Equity (TTM) | 17.03% | -10.63% |
| Return on Assets (TTM) | 1.89% | -2.89% |
| Return on Invested Capital (TTM) | 15.74% | -4.85% |
| Net Profit Margin (TTM) | 10.46% | -9.21% |
| Operating Profit Margin (TTM) | 27.62% | -14.94% |
| Gross Profit Margin (TTM) | 60.51% | 99.03% |
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.
UPST
4.06
Financial - Credit Services Industry
- Max
- 8.15
- Q3
- 4.39
- Median
- 2.62
- Q1
- 1.06
- Min
- 0.15
For the Financial - Credit Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
UPST
2.04
Financial - Credit Services Industry
- Max
- 4.69
- Q3
- 2.55
- Median
- 1.20
- Q1
- 0.55
- Min
- 0.00
UPST’s Debt-to-Equity Ratio of 2.04 is typical for the Financial - Credit Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
UPST
-2.43
Financial - Credit Services Industry
- Max
- 17.48
- Q3
- 7.42
- Median
- 1.59
- Q1
- 0.38
- Min
- -7.77
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Credit Services industry.
Financial Strength at a Glance
| Symbol | ARES | UPST |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 4.06 |
| Quick Ratio (TTM) | 0.90 | 4.06 |
| Debt-to-Equity Ratio (TTM) | 0.15 | 2.04 |
| Debt-to-Asset Ratio (TTM) | 0.03 | 0.60 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.04 | -13.68 |
| Interest Coverage Ratio (TTM) | 1.95 | -2.43 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARES and UPST. 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.
UPST
0.00%
Financial - Credit Services Industry
- Max
- 14.68%
- Q3
- 2.97%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
UPST currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
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.
UPST
0.00%
Financial - Credit Services Industry
- Max
- 169.58%
- Q3
- 38.15%
- Median
- 18.30%
- Q1
- 0.00%
- Min
- 0.00%
UPST has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | ARES | UPST |
|---|---|---|
| Dividend Yield (TTM) | 2.30% | 0.00% |
| Dividend Payout Ratio (TTM) | 323.36% | 0.00% |
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.
UPST
-104.76
Financial - Credit Services Industry
- Max
- 42.04
- Q3
- 25.88
- Median
- 12.28
- Q1
- 9.55
- Min
- 3.09
UPST has a negative P/E Ratio of -104.76. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
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.
UPST
-2.82
Financial - Credit Services Industry
- Max
- 2.76
- Q3
- 1.57
- Median
- 0.82
- Q1
- 0.51
- Min
- 0.06
UPST has a negative Forward PEG Ratio of -2.82. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
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.
UPST
9.74
Financial - Credit Services Industry
- Max
- 6.24
- Q3
- 3.02
- Median
- 1.54
- Q1
- 0.75
- Min
- 0.32
The P/S Ratio is often not a primary valuation tool in the Financial - Credit Services 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.
UPST
10.29
Financial - Credit Services Industry
- Max
- 3.58
- Q3
- 2.84
- Median
- 1.28
- Q1
- 0.84
- Min
- 0.07
At 10.29, UPST’s P/B Ratio is at an extreme premium to the Financial - Credit Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ARES | UPST |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 72.45 | -104.76 |
| Forward PEG Ratio (TTM) | 3.26 | -2.82 |
| Price-to-Sales Ratio (P/S, TTM) | 7.78 | 9.74 |
| Price-to-Book Ratio (P/B, TTM) | 8.36 | 10.29 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.96 | 66.37 |
| EV-to-EBITDA (TTM) | 23.40 | -137.40 |
| EV-to-Sales (TTM) | 7.80 | 10.81 |