Analyzing Ares Management (NYSE:ARES) and Jupiter Fund Management (OTCMKTS:JFHHF)

Ares Management (NYSE:ARES) and Jupiter Fund Management (OTCMKTS:JFHHF) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Institutional & Insider Ownership

50.0% of Ares Management shares are held by institutional investors. 36.9% of Ares Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Ares Management and Jupiter Fund Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ares Management	9.41%	19.26%	4.89%
Jupiter Fund Management	N/A	N/A	N/A

Risk & Volatility

Ares Management has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Jupiter Fund Management has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Ares Management and Jupiter Fund Management, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ares Management	0	4	13	1	2.83
Jupiter Fund Management	1	2	0	0	1.67

Ares Management currently has a consensus target price of $185.13, indicating a potential upside of 34.79%. Given Ares Management’s stronger consensus rating and higher possible upside, research analysts clearly believe Ares Management is more favorable than Jupiter Fund Management.

Earnings & Valuation

This table compares Ares Management and Jupiter Fund Management”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ares Management	$5.60 billion	8.01	$527.36 million	$1.69	81.27
Jupiter Fund Management	N/A	N/A	N/A	N/A	N/A

Ares Management has higher revenue and earnings than Jupiter Fund Management.

Summary

Ares Management beats Jupiter Fund Management on 11 of the 11 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 Jupiter Fund Management

Jupiter Fund Management Plc is a publicly owned investment manager. The firm manages mutual funds, hedge funds, client focused portfolios, and multi-manager products for its clients. It invests in the public equity markets across U.K., Europe and global emerging markets. The firm also invests in fixed income markets, fund of funds products, hedge funds, and absolute return funds. Jupiter Fund Management Plc was founded in 1985 and is based in London, United Kingdom.