Ares Management L.P. (NYSE: ARES) and Calamos Asset Management (NASDAQ:CLMS) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Earnings & Valuation

This table compares Ares Management L.P. and Calamos Asset Management’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ares Management L.P. $1.47 billion 2.60 $260.09 million $0.73 24.45
Calamos Asset Management N/A N/A N/A $0.05 165.60

Ares Management L.P. has higher revenue and earnings than Calamos Asset Management. Ares Management L.P. is trading at a lower price-to-earnings ratio than Calamos Asset Management, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ares Management L.P. and Calamos Asset Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ares Management L.P. 5.86% 40.94% 7.01%
Calamos Asset Management 58.85% 2.51% 13.51%

Analyst Recommendations

This is a summary of recent ratings and target prices for Ares Management L.P. and Calamos Asset Management, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ares Management L.P. 0 1 6 0 2.86
Calamos Asset Management 0 0 0 0 N/A

Ares Management L.P. presently has a consensus price target of $21.50, indicating a potential upside of 20.45%. Given Ares Management L.P.’s higher possible upside, analysts clearly believe Ares Management L.P. is more favorable than Calamos Asset Management.

Insider and Institutional Ownership

14.7% of Ares Management L.P. shares are owned by institutional investors. Comparatively, 56.5% of Calamos Asset Management shares are owned by institutional investors. 20.4% of Calamos Asset Management shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Ares Management L.P. has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Calamos Asset Management has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Dividends

Ares Management L.P. pays an annual dividend of $1.24 per share and has a dividend yield of 6.9%. Calamos Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 7.2%. Ares Management L.P. pays out 169.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Calamos Asset Management pays out 1,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Ares Management L.P. beats Calamos Asset Management on 7 of the 12 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 Calamos Asset Management

Calamos Asset Management, Inc. is a holding company. The Company is the manager of Calamos Investments LLC, which owns and manages its operating companies. The Company provides investment advisory services to individuals and institutional investors through investment products that include open-end and closed-end funds (Funds), an exchange traded fund, separate accounts, offshore funds and partnerships. The subsidiaries through which the Company provides these services include Calamos Advisors LLC (CAL), an investment advisor; Calamos Financial Services LLC (CFS), a broker-dealer; Calamos Wealth Management LLC, an investment advisor, and Calamos Investments LLP, a United Kingdom-based investment advisor, and a distributor of the offshore funds and Company products.

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