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 $88.2B against $44.2B — 2.0× the size. KKR & Co. Inc. trades at the lower P/E: 29.3× against 69.2×. KKR & Co. Inc. grew revenue faster over the last twelve months: 31.1% against 7.61%. KKR & Co. Inc. has the higher net margin (14.0% vs 5.75%) and the higher return on invested capital (1.08% vs 0.00%). Both pay a dividend; Ares Management Corporation yields more (3.86% vs 0.77%). Across the 21 metrics below, KKR & Co. Inc. leads on 12 and Ares Management Corporation on 9.

Valuation

Metric ARES KKR Asset Management median
P/E 69.23 29.34 13.38
P/S 5.28 4.14 2.99
P/B 4.26 1.18 0.91
Price to free cash flow 36.41 37.73 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 1.44% 3.41% 4.67%
Free cash flow yield 2.75% 2.65% 4.85%

Profitability

Metric ARES KKR Asset Management median
Gross margin 100.00% 44.08% 100.00%
Operating margin 17.66% 8.92% 27.27%
Net margin 5.75% 14.03% 11.89%
Free cash flow margin 0.00% 10.98% 5.96%
Return on equity 0.00% 4.23% 4.57%
Return on assets 0.00% 0.75% 1.40%
Return on invested capital 0.00% 1.08% 2.12%

Growth

Metric ARES KKR Asset Management median
Revenue growth (TTM) 7.61% 31.14% 7.26%
EPS growth (last fiscal year) (16.18%) (28.66%) (5.64%)
Revenue growth, 5-year CAGR 26.00% 35.69% 11.84%
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 0.40
Current ratio 0.26 0.09 1.23
Net debt to EBITDA 3.98 61.23 1.06

Dividend

Metric ARES KKR Asset Management median
Dividend yield 3.86% 0.77% 6.43%
Payout ratio 2.68 0.24 0.91

Size

Metric ARES KKR Asset Management median
Market cap 44.16b 88.24b 692.54m

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