Ares Management Corporation (ARES) vs Blackstone Inc. (BX)

Ares Management Corporation and Blackstone Inc. are both Asset Management companies. Blackstone Inc. is the larger, with a market value of $145.4B against $39.7B — 3.7× the size. Blackstone Inc. trades at the lower P/E: 26.5× against 56.0×. Ares Management Corporation grew revenue faster over the last twelve months: 24.0% against 17.2%. Blackstone Inc. has the higher net margin (21.8% vs 8.94%) and the higher return on invested capital (15.1% vs 4.88%). Both pay a dividend; Blackstone Inc. yields more (3.34% vs 2.72%). Across the 22 metrics below, Blackstone Inc. leads on 16 and Ares Management Corporation on 6.

Valuation

Metric ARES BX Asset Management median
P/E 55.97 26.49 14.62
P/S 4.61 5.88 2.97
P/B 3.87 4.50 0.94
Price to free cash flow 33.02 17.27 8.93
EV/EBITDA 30.37 12.87 10.32
EV/Sales 5.49 6.53 5.72
Earnings yield 1.79% 3.77% 4.53%
Free cash flow yield 3.03% 5.79% 4.65%

Profitability

Metric ARES BX Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 18.08% 50.49% 33.03%
Net margin 8.94% 21.84% 13.53%
Free cash flow margin 13.96% 34.05% 12.44%
Return on equity 7.68% 17.31% 4.83%
Return on assets 1.88% 7.39% 1.57%
Return on invested capital 4.88% 15.08% 3.04%

Growth

Metric ARES BX Asset Management median
Revenue growth (TTM) 24.03% 17.19% 6.97%
EPS growth (last fiscal year) (16.18%) 6.91% —
Revenue growth, 5-year CAGR 26.00% 18.82% 12.13%
Net income growth, 5-year CAGR 26.71% 23.63% 0.00%

Health

Metric ARES BX Asset Management median
Debt to equity 0.83 0.63 0.42
Current ratio 0.26 0.72 1.28
Net debt to EBITDA 3.98 1.32 1.06

Dividend

Metric ARES BX Asset Management median
Dividend yield 2.72% 3.34% 6.92%
Payout ratio 1.66 — 0.77

Size

Metric ARES BX Asset Management median
Market cap 39.67b 145.37b 721.34m

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