Head to Head Analysis: Ares Management L.P. (ARES) and Manning & Napier (MN)
Ares Management L.P. (NYSE: ARES) and Manning & Napier (NYSE:MN) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Institutional and Insider Ownership
14.7% of Ares Management L.P. shares are owned by institutional investors. Comparatively, 57.0% of Manning & Napier shares are owned by institutional investors. 1.9% of Manning & Napier shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Ares Management L.P. has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Manning & Napier has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.
Ares Management L.P. pays an annual dividend of $1.24 per share and has a dividend yield of 6.6%. Manning & Napier pays an annual dividend of $0.32 per share and has a dividend yield of 8.1%. 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. Manning & Napier pays out 60.4% of its earnings in the form of a dividend. Manning & Napier is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of recent ratings for Ares Management L.P. and Manning & Napier, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ares Management L.P.||0||1||7||0||2.88|
|Manning & Napier||0||2||0||0||2.00|
Ares Management L.P. presently has a consensus price target of $21.00, suggesting a potential upside of 12.30%. Manning & Napier has a consensus price target of $4.00, suggesting a potential upside of 1.27%. Given Ares Management L.P.’s stronger consensus rating and higher possible upside, analysts clearly believe Ares Management L.P. is more favorable than Manning & Napier.
Valuation and Earnings
This table compares Ares Management L.P. and Manning & Napier’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ares Management L.P.||$1.47 billion||2.72||$260.09 million||$0.73||25.62|
|Manning & Napier||$229.41 million||0.26||$80.46 million||$0.53||7.45|
Ares Management L.P. has higher revenue and earnings than Manning & Napier. Manning & Napier 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.
This table compares Ares Management L.P. and Manning & Napier’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%|
|Manning & Napier||3.41%||34.28%||20.97%|
Ares Management L.P. beats Manning & Napier on 10 of the 16 factors compared between the two stocks.
Ares Management L.P. Company Profile
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.
Manning & Napier Company Profile
Manning & Napier, Inc. is an independent investment management company. The Company operates through investment management industry segment. It provides a range of investment solutions through separately managed accounts, mutual funds and collective investment trust funds, as well as a range of consultative services. It offers equity, fixed income and alternative strategies, as well as a range of blended asset portfolios, such as life cycle funds. It serves a client base of high net worth individuals and institutions, including 401(k) plans, pension plans, Taft-Hartley plans (Taft-Hartley), endowments and foundations. It offers its investment management capabilities through direct sales to high net worth individuals and institutions, as well as through third-party intermediaries, platforms and institutional investment consultants. Its investment management offerings include approximately 40 separate account composites, and over 60 mutual funds and collective investment trusts.
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