Ares Management L.P. (ARES) versus Hamilton Lane (HLNE) Critical Comparison
Ares Management L.P. (NYSE: ARES) and Hamilton Lane (NASDAQ:HLNE) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.
Ares Management L.P. pays an annual dividend of $1.64 per share and has a dividend yield of 8.8%. Hamilton Lane pays an annual dividend of $0.70 per share and has a dividend yield of 2.2%. Ares Management L.P. pays out 292.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent ratings and recommmendations for Ares Management L.P. and Hamilton Lane, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ares Management L.P.||0||1||7||0||2.88|
Ares Management L.P. currently has a consensus price target of $21.00, suggesting a potential upside of 13.21%. Hamilton Lane has a consensus price target of $23.50, suggesting a potential downside of 26.56%. Given Ares Management L.P.’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Ares Management L.P. is more favorable than Hamilton Lane.
Insider and Institutional Ownership
14.5% of Ares Management L.P. shares are held by institutional investors. Comparatively, 29.9% of Hamilton Lane shares are held by institutional investors. 62.9% of Hamilton Lane shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Ares Management L.P. and Hamilton Lane’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Ares Management L.P.||$1.20 billion||1.27||$111.80 million||$0.56||33.13|
|Hamilton Lane||$179.82 million||8.40||$610,000.00||N/A||N/A|
Ares Management L.P. has higher revenue and earnings than Hamilton Lane.
This table compares Ares Management L.P. and Hamilton Lane’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ares Management L.P.||4.98%||39.54%||6.11%|
Ares Management L.P. beats Hamilton Lane on 9 of the 13 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 Hamilton Lane
Hamilton Lane Incorporated is a global private markets investment solutions provider. The Company works with its clients to conceive, structure, build out, manage and monitor portfolios of private markets funds and direct investments, and it helps them access a set of such investment opportunities around the world. It offers a range of investment solutions across a range of private markets, including private equity, private credit, real estate, infrastructure, natural resources, growth equity and venture capital. These solutions are constructed from a range of investment types, including primary investments in funds managed by third-party managers, direct/co-investments alongside such funds and acquisitions of secondary stakes in such funds, with a range of its clients utilizing multiple investment types. These solutions are offered in a range of formats covering some or all phases of private markets investment programs, such as Customized Separate Accounts and Specialized Funds.
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