WallStSmart

Ares Management LP (ARES)vsBlackstone Group Inc (BX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Blackstone Group Inc generates 154% more annual revenue ($14.21B vs $5.60B). BX leads profitability with a 21.2% profit margin vs 9.4%. ARES appears more attractively valued with a PEG of 0.81. BX earns a higher WallStSmart Score of 77/100 (B+).

ARES

Buy

51

out of 100

Grade: C-

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

BX

Strong Buy

77

out of 100

Grade: B+

Growth: 10.0Profit: 9.0Value: 10.0Quality: 5.3
Piotroski: 2/9
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
BXUndervalued (+35.7%)

Margin of Safety

+35.7%

Fair Value

$181.12

Current Price

$108.38

$72.74 discount

UndervaluedFair: $181.12Overvalued

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

BX6 strengths · Avg: 9.2/10
Operating MarginProfitability
52.8%10/10

Strong operational efficiency at 52.8%

Revenue GrowthGrowth
50.6%10/10

Revenue surging 50.6% year-over-year

Market CapQuality
$131.98B9/10

Large-cap with strong market position

Return on EquityProfitability
29.2%9/10

Every $100 of equity generates 29 in profit

Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

EPS GrowthGrowth
42.5%8/10

Earnings expanding 42.5% YoY

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

BX4 concerns · Avg: 3.5/10
P/E RatioValuation
27.9x4/10

Moderate valuation

Price/BookValuation
9.8x4/10

Trading at 9.8x book value

Debt/EquityHealth
1.633/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : BX

The strongest argument for BX centers on Operating Margin, Revenue Growth, Market Cap. Profitability is solid with margins at 21.2% and operating margin at 52.8%. Revenue growth of 50.6% 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 : BX

The primary concerns for BX are P/E Ratio, Price/Book, Debt/Equity. Debt-to-equity of 1.63 is elevated, increasing financial risk.

Key Dynamics to Monitor

BX carries more volatility with a beta of 1.79 — expect wider price swings.

BX is growing revenue faster at 50.6% — sustainability is the question.

BX generates stronger free cash flow (-25M), providing more financial flexibility.

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

Bottom Line

BX scores higher overall (77/100 vs 51/100), backed by strong 21.2% margins and 50.6% 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.

Blackstone Group Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Blackstone Group Inc. is an alternative asset management company specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity strategies and multiple asset classes. The company is headquartered in New York, New York with additional offices across Asia, Europe and North America.

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