Affiliated Managers Group, Inc. (AMG) vs Ares Capital Corporation (ARCC)

Affiliated Managers Group, Inc. and Ares Capital Corporation are both Asset Management companies. Ares Capital Corporation is the larger, with a market value of $13.6B against $9.9B — 1.4× the size. Affiliated Managers Group, Inc. trades at the lower P/E: 12.3× against 13.9×. Affiliated Managers Group, Inc. grew revenue faster over the last twelve months: 11.8% against 3.16%. Affiliated Managers Group, Inc. has the higher net margin (37.7% vs 30.9%) and the higher return on invested capital (4.68% vs 3.24%). Both pay a dividend; Ares Capital Corporation yields more (10.3% vs 0.01%). Across the 19 metrics below, Affiliated Managers Group, Inc. leads on 13 and Ares Capital Corporation on 6.

Valuation

Metric AMG ARCC Asset Management median
P/E 12.31 13.87 13.99
P/S 4.46 4.33 2.76
P/B 2.58 0.97 0.85
Price to free cash flow 9.51 n/m 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.12% 7.21% 4.72%
Free cash flow yield 10.51% (5.06%) 4.44%

Profitability

Metric AMG ARCC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 21.52% 75.76% 33.42%
Net margin 37.71% 30.91% 13.37%
Free cash flow margin 46.91% (21.89%) 12.36%
Return on equity 21.21% 6.88% 4.79%
Return on assets 9.40% 3.22% 1.55%
Return on invested capital 4.68% 3.24% 2.97%

Growth

Metric AMG ARCC Asset Management median
Revenue growth (TTM) 11.80% 3.16% 7.42%
EPS growth (last fiscal year) 50.30% (23.77%) (6.67%)
Revenue growth, 5-year CAGR 0.46% 15.10% 12.51%
Net income growth, 5-year CAGR 28.80% 21.83% 0.00%

Health

Metric AMG ARCC Asset Management median
Debt to equity 0.76 1.14 0.44
Current ratio 1.24 1.28 1.30
Net debt to EBITDA 3.65 6.59 1.02

Dividend

Metric AMG ARCC Asset Management median
Dividend yield 0.01% 10.26% 6.60%
Payout ratio 0.00 1.42 0.94

Size

Metric AMG ARCC Asset Management median
Market cap 9.91b 13.58b 694.86m

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