WallStSmart

Ares Management LP (ARES)vsBrookfield Asset Management Inc (BAM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ares Management LP generates 16% more annual revenue ($5.60B vs $4.82B). BAM leads profitability with a 51.6% profit margin vs 9.4%. ARES appears more attractively valued with a PEG of 0.81. BAM earns a higher WallStSmart Score of 66/100 (B-).

ARES

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 5.5Value: 4.7Quality: 5.3
Piotroski: 6/9Altman Z: 0.71

BAM

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 9.0Value: 7.3Quality: 6.0
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARESSignificantly Overvalued (-1081.3%)

Margin of Safety

-1081.3%

Fair Value

$11.63

Current Price

$106.50

$94.87 premium

UndervaluedFair: $11.63Overvalued
BAMSignificantly Overvalued (-400.1%)

Margin of Safety

-400.1%

Fair Value

$10.47

Current Price

$42.87

$32.40 premium

UndervaluedFair: $10.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARES2 strengths · Avg: 8.0/10
PEG RatioValuation
0.818/10

Growing faster than its price suggests

Revenue GrowthGrowth
19.5%8/10

19.5% revenue growth

BAM5 strengths · Avg: 9.6/10
Profit MarginProfitability
51.6%10/10

Keeps 52 of every $100 in revenue as profit

Operating MarginProfitability
67.9%10/10

Strong operational efficiency at 67.9%

Revenue GrowthGrowth
31.1%10/10

Revenue surging 31.1% year-over-year

Market CapQuality
$70.28B9/10

Large-cap with strong market position

Return on EquityProfitability
22.3%9/10

Every $100 of equity generates 22 in profit

Areas to Watch

ARES4 concerns · Avg: 2.5/10
Price/BookValuation
8.4x4/10

Trading at 8.4x book value

P/E RatioValuation
62.0x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-81.4%2/10

Earnings declined 81.4%

Free Cash FlowQuality
$-2.15B2/10

Negative free cash flow — burning cash

BAM4 concerns · Avg: 3.3/10
P/E RatioValuation
27.9x4/10

Moderate valuation

Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-20.7%2/10

Earnings declined 20.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : ARES

The strongest argument for ARES centers on PEG Ratio, Revenue Growth. Revenue growth of 19.5% demonstrates continued momentum. PEG of 0.81 suggests the stock is reasonably priced for its growth.

Bull Case : BAM

The strongest argument for BAM centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 51.6% and operating margin at 67.9%. Revenue growth of 31.1% demonstrates continued momentum.

Bear Case : ARES

The primary concerns for ARES are Price/Book, P/E Ratio, EPS Growth. A P/E of 62.0x leaves little room for execution misses.

Bear Case : BAM

The primary concerns for BAM are P/E Ratio, Price/Book, Piotroski F-Score.

Key Dynamics to Monitor

ARES carries more volatility with a beta of 1.56 — expect wider price swings.

BAM is growing revenue faster at 31.1% — sustainability is the question.

BAM generates stronger free cash flow (706M), providing more financial flexibility.

Monitor ASSET MANAGEMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BAM scores higher overall (66/100 vs 51/100), backed by strong 51.6% margins and 31.1% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Ares Management LP

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Ares Management Corporation is an alternative asset manager in the United States, Europe, and Asia.

Brookfield Asset Management Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Brookfield Asset Management is a leading global alternative asset manager and one of the largest investors in real assets.

Visit Website →

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