Ares Management Corporation (ARES) vs Brookfield Asset Management Ltd. (BAM)

Ares Management Corporation and Brookfield Asset Management Ltd. are both Asset Management companies. Brookfield Asset Management Ltd. is the larger, with a market value of $73.0B against $39.7B — 1.8× the size. Brookfield Asset Management Ltd. trades at the lower P/E: 25.6× against 56.0×. Brookfield Asset Management Ltd. grew revenue faster over the last twelve months: 31.9% against 24.0%. Brookfield Asset Management Ltd. has the higher net margin (48.9% vs 8.94%) and the higher return on invested capital (19.7% vs 4.88%). Both pay a dividend; Brookfield Asset Management Ltd. yields more (3.73% vs 2.72%). Across the 22 metrics below, Brookfield Asset Management Ltd. leads on 18 and Ares Management Corporation on 4.

Valuation

Metric ARES BAM Asset Management median
P/E 55.97 25.63 14.62
P/S 4.61 12.42 2.97
P/B 3.87 7.75 0.94
Price to free cash flow 33.02 32.62 8.93
EV/EBITDA 30.37 20.45 10.32
EV/Sales 5.49 12.77 5.72
Earnings yield 1.79% 3.90% 4.53%
Free cash flow yield 3.03% 3.07% 4.65%

Profitability

Metric ARES BAM Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 18.08% 61.57% 33.03%
Net margin 8.94% 48.89% 13.53%
Free cash flow margin 13.96% 40.81% 12.44%
Return on equity 7.68% 30.56% 4.83%
Return on assets 1.88% 15.49% 1.57%
Return on invested capital 4.88% 19.65% 3.04%

Growth

Metric ARES BAM Asset Management median
Revenue growth (TTM) 24.03% 31.85% 6.97%
EPS growth (last fiscal year) (16.18%) 14.29% —
Revenue growth, 5-year CAGR 26.00% 16.19% 12.13%
Net income growth, 5-year CAGR 26.71% 43.87% 0.00%

Health

Metric ARES BAM Asset Management median
Debt to equity 0.83 0.44 0.42
Current ratio 0.26 0.75 1.28
Net debt to EBITDA 3.98 0.32 1.06

Dividend

Metric ARES BAM Asset Management median
Dividend yield 2.72% 3.73% 6.92%
Payout ratio 1.66 — 0.77

Size

Metric ARES BAM Asset Management median
Market cap 39.67b 72.97b 721.34m

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