Apollo Global Management Inc. (APO) vs Ares Management Corporation (ARES)

Apollo Global Management Inc. and Ares Management Corporation are both Asset Management companies. Apollo Global Management Inc. is the larger, with a market value of $71.3B against $39.7B — 1.8× the size. Apollo Global Management Inc. trades at the lower P/E: 43.5× against 56.0×. Apollo Global Management Inc. grew revenue faster over the last twelve months: 41.2% against 24.0%. Ares Management Corporation has the higher net margin (8.94% vs 4.95%) and the lower return on invested capital (4.88% vs 16.2%). Both pay a dividend; Ares Management Corporation yields more (2.72% vs 1.76%). Across the 22 metrics below, Apollo Global Management Inc. leads on 17 and Ares Management Corporation on 5.

Valuation

Metric APO ARES Asset Management median
P/E 43.46 55.97 14.62
P/S 2.01 4.61 2.97
P/B 1.80 3.87 0.94
Price to free cash flow 7.66 33.02 8.93
EV/EBITDA 6.56 30.37 10.32
EV/Sales 1.63 5.49 5.72
Earnings yield 2.30% 1.79% 4.53%
Free cash flow yield 13.06% 3.03% 4.65%

Profitability

Metric APO ARES Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 21.03% 18.08% 33.03%
Net margin 4.95% 8.94% 13.53%
Free cash flow margin 26.39% 13.96% 12.44%
Return on equity 4.90% 7.68% 4.83%
Return on assets 0.39% 1.88% 1.57%
Return on invested capital 16.15% 4.88% 3.04%

Growth

Metric APO ARES Asset Management median
Revenue growth (TTM) 41.23% 24.03% 6.97%
EPS growth (last fiscal year) (33.09%) (16.18%) —
Revenue growth, 5-year CAGR 68.58% 26.00% 12.13%
Net income growth, 5-year CAGR 95.13% 26.71% 0.00%

Health

Metric APO ARES Asset Management median
Debt to equity 0.33 0.83 0.42
Current ratio 1.70 0.26 1.28
Net debt to EBITDA (0.84) 3.98 1.06

Dividend

Metric APO ARES Asset Management median
Dividend yield 1.76% 2.72% 6.92%
Payout ratio — 1.66 0.77

Size

Metric APO ARES Asset Management median
Market cap 71.28b 39.67b 721.34m

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