Ares Management Corporation (ARES) vs Principal Financial Group, Inc. (PFG)

Ares Management Corporation and Principal Financial Group, Inc. are both Asset Management companies. Ares Management Corporation is the larger, with a market value of $39.7B against $24.4B — 1.6× the size. Principal Financial Group, Inc. trades at the lower P/E: 16.1× against 56.0×. Ares Management Corporation grew revenue faster over the last twelve months: 24.0% against 3.72%. Principal Financial Group, Inc. has the higher net margin (9.93% vs 8.94%) and the higher return on invested capital (10.3% vs 4.88%). Both pay a dividend; Principal Financial Group, Inc. yields more (3.35% vs 2.72%). Across the 22 metrics below, Principal Financial Group, Inc. leads on 13 and Ares Management Corporation on 9.

Valuation

Metric ARES PFG Asset Management median
P/E 55.97 16.07 14.62
P/S 4.61 1.58 2.97
P/B 3.87 2.03 0.94
Price to free cash flow 33.02 n/m 8.93
EV/EBITDA 30.37 12.81 10.32
EV/Sales 5.49 1.52 5.72
Earnings yield 1.79% 6.22% 4.53%
Free cash flow yield 3.03% (20.37%) 4.65%

Profitability

Metric ARES PFG Asset Management median
Gross margin 100.00% 47.67% 100.00%
Operating margin 18.08% 11.87% 33.03%
Net margin 8.94% 9.93% 13.53%
Free cash flow margin 13.96% 30.92% 12.44%
Return on equity 7.68% 13.18% 4.83%
Return on assets 1.88% 0.46% 1.57%
Return on invested capital 4.88% 10.34% 3.04%

Growth

Metric ARES PFG Asset Management median
Revenue growth (TTM) 24.03% 3.72% 6.97%
EPS growth (last fiscal year) (16.18%) (21.41%) —
Revenue growth, 5-year CAGR 26.00% 1.17% 12.13%
Net income growth, 5-year CAGR 26.71% (3.22%) 0.00%

Health

Metric ARES PFG Asset Management median
Debt to equity 0.83 0.36 0.42
Current ratio 0.26 0.24 1.28
Net debt to EBITDA 3.98 (0.28) 1.06

Dividend

Metric ARES PFG Asset Management median
Dividend yield 2.72% 3.35% 6.92%
Payout ratio 1.66 0.39 0.77

Size

Metric ARES PFG Asset Management median
Market cap 39.67b 24.44b 721.34m

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