Ares Management Corporation (ARES) vs BlackRock (BLK)

Ares Management Corporation and BlackRock are both Asset Management companies. BlackRock is the larger, with a market value of $174.4B against $39.7B — 4.4× the size. BlackRock trades at the lower P/E: 25.6× against 56.0×. BlackRock grew revenue faster over the last twelve months: 26.5% against 24.0%. BlackRock has the higher net margin (24.1% vs 8.94%) and the higher return on invested capital (8.37% vs 4.88%). Both pay a dividend; Ares Management Corporation yields more (2.72% vs 2.62%). Across the 22 metrics below, BlackRock leads on 14 and Ares Management Corporation on 8.

Valuation

Metric ARES BLK Asset Management median
P/E 55.97 25.63 14.62
P/S 4.61 6.18 2.97
P/B 3.87 2.91 0.94
Price to free cash flow 33.02 47.96 8.93
EV/EBITDA 30.37 17.08 10.32
EV/Sales 5.49 6.49 5.72
Earnings yield 1.79% 3.90% 4.53%
Free cash flow yield 3.03% 2.08% 4.65%

Profitability

Metric ARES BLK Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 18.08% 32.57% 33.03%
Net margin 8.94% 24.09% 13.53%
Free cash flow margin 13.96% 12.88% 12.44%
Return on equity 7.68% 12.27% 4.83%
Return on assets 1.88% 4.08% 1.57%
Return on invested capital 4.88% 8.37% 3.04%

Growth

Metric ARES BLK Asset Management median
Revenue growth (TTM) 24.03% 26.54% 6.97%
EPS growth (last fiscal year) (16.18%) (15.95%) —
Revenue growth, 5-year CAGR 26.00% 8.37% 12.13%
Net income growth, 5-year CAGR 26.71% 2.40% 0.00%

Health

Metric ARES BLK Asset Management median
Debt to equity 0.83 0.33 0.42
Current ratio 0.26 3.59 1.28
Net debt to EBITDA 3.98 1.13 1.06

Dividend

Metric ARES BLK Asset Management median
Dividend yield 2.72% 2.62% 6.92%
Payout ratio 1.66 0.58 0.77

Size

Metric ARES BLK Asset Management median
Market cap 39.67b 174.38b 721.34m

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