ARES vs. WTW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARES and WTW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ARES’s market capitalization stands at 38.26 billion USD, while WTW’s is 30.40 billion USD, indicating their market valuations are broadly comparable.
ARES’s beta of 1.40 points to significantly higher volatility compared to WTW (beta: 0.71), suggesting ARES has greater potential for both gains and losses relative to market movements.
| Symbol | ARES | WTW |
|---|---|---|
| Company Name | Ares Management Corporation | Willis Towers Watson Public Limited Company |
| Country | US | GB |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Insurance - Brokers |
| CEO | Michael J. Arougheti | Carl A. Hess CERA, |
| Price | 177.96 USD | 306.64 USD |
| Market Cap | 38.26 billion USD | 30.40 billion USD |
| Beta | 1.40 | 0.71 |
| Exchange | NYSE | NASDAQ |
| IPO Date | May 2, 2014 | June 12, 2001 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARES and WTW 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.
WTW
-0.64%
Insurance - Brokers Industry
- Max
- 40.40%
- Q3
- 30.52%
- Median
- 22.48%
- Q1
- 4.38%
- Min
- -5.38%
WTW has a negative Return on Equity of -0.64%. 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.
WTW
-1.51%
Insurance - Brokers Industry
- Max
- 11.62%
- Q3
- 11.18%
- Median
- 8.38%
- Q1
- 2.57%
- Min
- -1.51%
WTW has a negative Return on Invested Capital of -1.51%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
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.
WTW
-0.54%
Insurance - Brokers Industry
- Max
- 21.33%
- Q3
- 15.86%
- Median
- 10.63%
- Q1
- 1.06%
- Min
- -2.28%
WTW has a negative Net Profit Margin of -0.54%, 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.
WTW
8.87%
Insurance - Brokers Industry
- Max
- 28.73%
- Q3
- 23.24%
- Median
- 21.46%
- Q1
- 10.89%
- Min
- 5.35%
WTW’s Operating Profit Margin of 8.87% is in the lower quartile for the Insurance - Brokers industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | ARES | WTW |
|---|---|---|
| Return on Equity (TTM) | 17.03% | -0.64% |
| Return on Assets (TTM) | 1.89% | -0.19% |
| Return on Invested Capital (TTM) | 15.74% | -1.51% |
| Net Profit Margin (TTM) | 10.46% | -0.54% |
| Operating Profit Margin (TTM) | 27.62% | 8.87% |
| Gross Profit Margin (TTM) | 60.51% | 52.69% |
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.
WTW
1.16
Insurance - Brokers Industry
- Max
- 1.90
- Q3
- 1.76
- Median
- 1.29
- Q1
- 1.14
- Min
- 1.05
WTW’s Current Ratio of 1.16 aligns with the median group of the Insurance - Brokers industry, indicating that its short-term liquidity is in line with its sector peers.
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.
WTW
0.73
Insurance - Brokers Industry
- Max
- 4.59
- Q3
- 2.12
- Median
- 0.59
- Q1
- 0.07
- Min
- 0.01
WTW’s Debt-to-Equity Ratio of 0.73 is typical for the Insurance - Brokers 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.
WTW
3.30
Insurance - Brokers Industry
- Max
- 29.40
- Q3
- 16.65
- Median
- 7.25
- Q1
- 4.20
- Min
- 1.60
In the lower quartile for the Insurance - Brokers industry, WTW’s Interest Coverage Ratio of 3.30 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | ARES | WTW |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 1.16 |
| Quick Ratio (TTM) | 0.90 | 1.16 |
| Debt-to-Equity Ratio (TTM) | 0.15 | 0.73 |
| Debt-to-Asset Ratio (TTM) | 0.03 | 0.21 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.04 | 1.36 |
| Interest Coverage Ratio (TTM) | 1.95 | 3.30 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARES and WTW. 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.
WTW
1.17%
Insurance - Brokers Industry
- Max
- 2.63%
- Q3
- 1.34%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
WTW’s Dividend Yield of 1.17% is consistent with its peers in the Insurance - Brokers industry, providing a dividend return that is standard for its sector.
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.
WTW
-671.70%
Insurance - Brokers Industry
- Max
- 45.22%
- Q3
- 39.19%
- Median
- 29.49%
- Q1
- 3.85%
- Min
- 0.00%
WTW has a negative Dividend Payout Ratio of -671.70%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.
Dividend at a Glance
| Symbol | ARES | WTW |
|---|---|---|
| Dividend Yield (TTM) | 2.30% | 1.17% |
| Dividend Payout Ratio (TTM) | 323.36% | -671.70% |
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.
WTW
-578.57
Insurance - Brokers Industry
- Max
- 45.50
- Q3
- 35.20
- Median
- 30.00
- Q1
- 28.34
- Min
- 26.42
WTW has a negative P/E Ratio of -578.57. 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.
WTW
-41.18
Insurance - Brokers Industry
- Max
- 3.32
- Q3
- 3.00
- Median
- 2.77
- Q1
- 2.41
- Min
- 2.09
WTW has a negative Forward PEG Ratio of -41.18. 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.
WTW
3.10
Insurance - Brokers Industry
- Max
- 7.38
- Q3
- 5.34
- Median
- 4.27
- Q1
- 2.32
- Min
- 0.27
WTW’s P/S Ratio of 3.10 aligns with the market consensus for the Insurance - Brokers industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
WTW
3.77
Insurance - Brokers Industry
- Max
- 10.90
- Q3
- 8.10
- Median
- 6.93
- Q1
- 4.15
- Min
- 1.12
WTW’s P/B Ratio of 3.77 is in the lower quartile for the Insurance - Brokers industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | ARES | WTW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 72.45 | -578.57 |
| Forward PEG Ratio (TTM) | 3.26 | -41.18 |
| Price-to-Sales Ratio (P/S, TTM) | 7.78 | 3.10 |
| Price-to-Book Ratio (P/B, TTM) | 8.36 | 3.77 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 6.96 | 20.80 |
| EV-to-EBITDA (TTM) | 23.40 | 10.72 |
| EV-to-Sales (TTM) | 7.80 | 3.55 |