Ares Management (NYSE:ARES – Get Free Report) and Acadian Asset Management (NYSE:AAMI – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Risk & Volatility
Ares Management has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Acadian Asset Management has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for Ares Management and Acadian Asset Management, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ares Management | 0 | 5 | 9 | 0 | 2.64 |
| Acadian Asset Management | 0 | 1 | 0 | 0 | 2.00 |
Institutional & Insider Ownership
50.0% of Ares Management shares are held by institutional investors. Comparatively, 98.7% of Acadian Asset Management shares are held by institutional investors. 41.9% of Ares Management shares are held by company insiders. Comparatively, 27.7% of Acadian Asset Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Ares Management and Acadian Asset Management’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ares Management | 11.35% | 16.64% | 3.41% |
| Acadian Asset Management | 16.81% | 1,000.27% | 18.11% |
Dividends
Ares Management pays an annual dividend of $3.72 per share and has a dividend yield of 3.2%. Acadian Asset Management pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Ares Management pays out 183.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadian Asset Management pays out 1.8% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Ares Management and Acadian Asset Management”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ares Management | $5.19 billion | 7.14 | $440.96 million | $2.03 | 57.90 |
| Acadian Asset Management | $505.60 million | 1.69 | $85.00 million | $2.24 | 10.20 |
Ares Management has higher revenue and earnings than Acadian Asset Management. Acadian Asset Management is trading at a lower price-to-earnings ratio than Ares Management, indicating that it is currently the more affordable of the two stocks.
Summary
Ares Management beats Acadian Asset Management on 9 of the 16 factors compared between the two stocks.
About Ares Management
Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. The company's Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies. The company's Private Equity Group segment focuses on majority or shared-control investments primarily in under-capitalized companies. Its Real Estate Group segment invests in new developments and the repositioning of assets, with a focus on control or majority-control investments; and originates and invests in a range of self-originated financing opportunities for middle-market owners and operators of commercial real estate. The firm was previously known as Ares Management, L.P. Ares Management Corporation was founded in 1997 and is headquartered in Los Angeles, California with additional offices in the United States, Europe and Asia. Ares Management GP LLC is the general partner of the company.
About Acadian Asset Management
Acadian Asset Management Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as BrightSphere Investment Group plc. BrightSphere Investment Group Inc. was formed in 1980 and is based in Boston, Massachusetts.
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