Ameriprise Financial, Inc. (AMP) vs Ares Management Corporation (ARES)

Ameriprise Financial, Inc. and Ares Management Corporation are both Asset Management companies. Ameriprise Financial, Inc. and Ares Management Corporation are of similar size ($42.9B and $39.7B). Ameriprise Financial, Inc. trades at the lower P/E: 11.7× against 56.0×. Ares Management Corporation grew revenue faster over the last twelve months: 24.0% against 10.6%. Ameriprise Financial, Inc. has the higher net margin (20.2% vs 8.94%) and the higher return on invested capital (154.8% vs 4.88%). Both pay a dividend; Ares Management Corporation yields more (2.72% vs 1.46%). Across the 22 metrics below, Ameriprise Financial, Inc. leads on 16 and Ares Management Corporation on 6.

Valuation

Metric AMP ARES Asset Management median
P/E 11.73 55.97 14.62
P/S 2.32 4.61 2.97
P/B 7.11 3.87 0.94
Price to free cash flow 5.61 33.02 8.93
EV/EBITDA 6.29 30.37 10.32
EV/Sales 2.12 5.49 5.72
Earnings yield 8.53% 1.79% 4.53%
Free cash flow yield 17.82% 3.03% 4.65%

Profitability

Metric AMP ARES Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 33.99% 18.08% 33.03%
Net margin 20.24% 8.94% 13.53%
Free cash flow margin 41.35% 13.96% 12.44%
Return on equity 63.43% 7.68% 4.83%
Return on assets 2.06% 1.88% 1.57%
Return on invested capital 154.82% 4.88% 3.04%

Growth

Metric AMP ARES Asset Management median
Revenue growth (TTM) 10.64% 24.03% 6.97%
EPS growth (last fiscal year) 9.77% (16.18%) —
Revenue growth, 5-year CAGR 9.20% 26.00% 12.13%
Net income growth, 5-year CAGR 18.36% 26.71% 0.00%

Health

Metric AMP ARES Asset Management median
Debt to equity 0.99 0.83 0.42
Current ratio 0.71 0.26 1.28
Net debt to EBITDA (0.71) 3.98 1.06

Dividend

Metric AMP ARES Asset Management median
Dividend yield 1.46% 2.72% 6.92%
Payout ratio 0.23 1.66 0.77

Size

Metric AMP ARES Asset Management median
Market cap 42.85b 39.67b 721.34m

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