Ares Management Corporation (ARES) vs Northern Trust Corporation (NTRS)

Ares Management Corporation and Northern Trust Corporation are both Asset Management companies. Ares Management Corporation is the larger, with a market value of $39.7B against $31.9B — 1.2× the size. Northern Trust Corporation trades at the lower P/E: 15.0× against 56.0×. Ares Management Corporation grew revenue faster over the last twelve months: 24.0% against 3.12%. Northern Trust Corporation has the higher net margin (14.4% vs 8.94%) and the lower return on invested capital (0.00% vs 4.88%). Both pay a dividend; Northern Trust Corporation yields more (3.93% vs 2.72%). Across the 21 metrics below, Northern Trust Corporation leads on 12 and Ares Management Corporation on 9.

Valuation

Metric ARES NTRS Asset Management median
P/E 55.97 15.01 14.62
P/S 4.61 2.13 2.97
P/B 3.87 2.58 0.94
Price to free cash flow 33.02 n/m 8.93
EV/EBITDA 30.37 n/m 10.32
EV/Sales 5.49 (1.36) 5.72
Earnings yield 1.79% 6.66% 4.53%
Free cash flow yield 3.03% (0.67%) 4.65%

Profitability

Metric ARES NTRS Asset Management median
Gross margin 100.00% 59.61% 100.00%
Operating margin 18.08% 0.00% 33.03%
Net margin 8.94% 14.36% 13.53%
Free cash flow margin 13.96% (1.44%) 12.44%
Return on equity 7.68% 17.81% 4.83%
Return on assets 1.88% 1.24% 1.57%
Return on invested capital 4.88% 0.00% 3.04%

Growth

Metric ARES NTRS Asset Management median
Revenue growth (TTM) 24.03% 3.12% 6.97%
EPS growth (last fiscal year) (16.18%) (10.54%) —
Revenue growth, 5-year CAGR 26.00% 17.81% 12.13%
Net income growth, 5-year CAGR 26.71% 8.03% 0.00%

Health

Metric ARES NTRS Asset Management median
Debt to equity 0.83 0.40 0.42
Current ratio 0.26 0.65 1.28
Net debt to EBITDA 3.98 0.00 1.06

Dividend

Metric ARES NTRS Asset Management median
Dividend yield 2.72% 3.93% 6.92%
Payout ratio 1.66 0.54 0.77

Size

Metric ARES NTRS Asset Management median
Market cap 39.67b 31.93b 721.34m

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