Ares Management L.P. (ARES) versus Eaton Vance Corporation (EV) Financial Survey
Ares Management L.P. (NYSE: ARES) and Eaton Vance Corporation (NYSE:EV) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitabiliy and analyst recommendations.
This table compares Ares Management L.P. and Eaton Vance Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ares Management L.P.||5.65%||35.09%||6.51%|
|Eaton Vance Corporation||18.39%||36.63%||13.68%|
This is a summary of recent ratings and target prices for Ares Management L.P. and Eaton Vance Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ares Management L.P.||0||2||6||0||2.75|
|Eaton Vance Corporation||1||4||1||0||2.00|
Ares Management L.P. presently has a consensus target price of $20.86, suggesting a potential upside of 15.55%. Eaton Vance Corporation has a consensus target price of $47.08, suggesting a potential downside of 0.92%. Given Ares Management L.P.’s stronger consensus rating and higher possible upside, analysts clearly believe Ares Management L.P. is more favorable than Eaton Vance Corporation.
Ares Management L.P. pays an annual dividend of $0.52 per share and has a dividend yield of 2.9%. Eaton Vance Corporation pays an annual dividend of $1.12 per share and has a dividend yield of 2.4%. Ares Management L.P. pays out 78.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eaton Vance Corporation pays out 49.3% of its earnings in the form of a dividend. Eaton Vance Corporation has increased its dividend for 36 consecutive years.
Insider and Institutional Ownership
14.6% of Ares Management L.P. shares are held by institutional investors. Comparatively, 71.0% of Eaton Vance Corporation shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Ares Management L.P. and Eaton Vance Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ares Management L.P.||$1.30 billion||2.97||$241.00 million||$0.66||27.35|
|Eaton Vance Corporation||$1.42 billion||3.71||$461.96 million||$2.27||20.93|
Eaton Vance Corporation has higher revenue and earnings than Ares Management L.P.. Eaton Vance Corporation is trading at a lower price-to-earnings ratio than Ares Management L.P., indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Ares Management L.P. has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Eaton Vance Corporation has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.
Eaton Vance Corporation beats Ares Management L.P. on 12 of the 16 factors compared between the two stocks.
About Ares Management L.P.
Ares Management, L.P. is an alternative asset manager. The Company offers its investors a range of investment strategies. It operates through three segments: Credit Group, Private Equity Group and Real Estate Group. The Credit Group segment manages credit strategies across the non-investment grade credit universe in the United States and Europe. It offers a range of credit strategies across the liquid and illiquid spectrum, including syndicated loans, high yield bonds, credit opportunities, structured credit investments and the United States and European direct lending. The Credit Group provides solutions for traditional fixed income investors. The Private Equity Group segment categorizes its investment strategies as corporate private equity, the United States power and energy infrastructure and special situations. The Real Estate Group segment manages public and private equity and debt strategies. The Real Estate Group manages both a value-add strategy and an opportunistic strategy.
About Eaton Vance Corporation
Eaton Vance Corp. is engaged in the business of managing investment funds and providing investment management and advisory services to high-net-worth individuals and institutions. The Company operates as an investment advisor to funds and separate accounts. The Company, through its subsidiaries and other affiliates, manages active equity, income and alternative strategies across a range of investment styles and asset classes, including the United States and global equities, floating-rate bank loans, municipal bonds, global income, high-yield and investment grade bonds. Through its subsidiary, the Company also manages a range of engineered alpha strategies, including systematic equity, systematic alternatives and managed options strategies. The Company’s open-end fund lineup includes tax-managed equity funds, and non-tax-managed equity and multi-asset funds. The Company’s family of closed-end funds includes municipal bond, domestic and global equity, and bank loan.
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