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 $190.2B against $44.2B — 4.3× the size. BlackRock trades at the lower P/E: 26.3× against 69.2×. BlackRock grew revenue faster over the last twelve months: 24.7% against 7.61%. BlackRock has the higher net margin (24.2% vs 5.75%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; Ares Management Corporation yields more (3.86% vs 1.91%). Across the 16 metrics below, BlackRock leads on 10 and Ares Management Corporation on 6.

Valuation

Metric ARES BLK Asset Management median
P/E 69.23 26.34 13.38
P/S 5.28 6.37 2.99
P/B 4.26 3.14 0.91
Price to free cash flow 36.41 51.71 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 1.44% 3.80% 4.67%
Free cash flow yield 2.75% 1.93% 4.85%

Profitability

Metric ARES BLK Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 17.66% 32.46% 27.27%
Net margin 5.75% 24.22% 11.89%
Free cash flow margin 0.00% 0.00% 5.96%
Return on equity 0.00% 0.00% 4.57%
Return on assets 0.00% 0.00% 1.40%
Return on invested capital 0.00% 0.00% 2.12%

Growth

Metric ARES BLK Asset Management median
Revenue growth (TTM) 7.61% 24.72% 7.26%
EPS growth (last fiscal year) (16.18%) (15.95%) (5.64%)
Revenue growth, 5-year CAGR 26.00% 8.37% 11.84%
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 0.40
Current ratio 0.26 3.59 1.23
Net debt to EBITDA 3.98 1.13 1.06

Dividend

Metric ARES BLK Asset Management median
Dividend yield 3.86% 1.91% 6.43%
Payout ratio 2.68 0.51 0.91

Size

Metric ARES BLK Asset Management median
Market cap 44.16b 190.21b 692.54m

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