Ares Management Corporation (ARES) vs KKR & Co. Inc. (KKR)

Ares Management Corporation and KKR & Co. Inc. are both Asset Management companies. KKR & Co. Inc. is the larger, with a market value of $86.4B against $39.7B — 2.2× the size. KKR & Co. Inc. trades at the lower P/E: 28.8× against 56.0×. KKR & Co. Inc. grew revenue faster over the last twelve months: 31.1% against 24.0%. KKR & Co. Inc. has the higher net margin (14.0% vs 8.94%) and the lower return on invested capital (1.08% vs 4.88%). Both pay a dividend; Ares Management Corporation yields more (2.72% vs 0.73%). Across the 23 metrics below, Ares Management Corporation leads on 15 and KKR & Co. Inc. on 8.

Valuation

Metric ARES KKR Asset Management median
P/E 55.97 28.77 14.62
P/S 4.61 4.06 2.97
P/B 3.87 1.16 0.94
Price to free cash flow 33.02 37.00 8.93
EV/EBITDA 30.37 69.76 10.32
EV/Sales 5.49 5.58 5.72
Earnings yield 1.79% 3.48% 4.53%
Free cash flow yield 3.03% 2.70% 4.65%

Profitability

Metric ARES KKR Asset Management median
Gross margin 100.00% 44.08% 100.00%
Operating margin 18.08% 8.92% 33.03%
Net margin 8.94% 14.03% 13.53%
Free cash flow margin 13.96% 10.98% 12.44%
Return on equity 7.68% 4.23% 4.83%
Return on assets 1.88% 0.75% 1.57%
Return on invested capital 4.88% 1.08% 3.04%

Growth

Metric ARES KKR Asset Management median
Revenue growth (TTM) 24.03% 31.14% 6.97%
EPS growth (last fiscal year) (16.18%) (28.66%) —
Revenue growth, 5-year CAGR 26.00% 35.69% 12.13%
Net income growth, 5-year CAGR 26.71% 2.96% 0.00%

Health

Metric ARES KKR Asset Management median
Debt to equity 0.83 0.69 0.42
Current ratio 0.26 0.09 1.28
Net debt to EBITDA 3.98 61.23 1.06

Dividend

Metric ARES KKR Asset Management median
Dividend yield 2.72% 0.73% 6.92%
Payout ratio 1.66 — 0.77

Size

Metric ARES KKR Asset Management median
Market cap 39.67b 86.42b 721.34m

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