CG vs ARES

For growth investors, Ares Management Corporation (ARES) is the stronger pick with 66.

6% revenue growth year-over-year, versus 19. 8% for The Carlyle Group Inc. (CG). The Carlyle Group Inc. (CG) offers the better valuation at 23. 3x trailing P/E (11. 8x forward), making it the more compelling value choice. Analysts rate The Carlyle Group Inc. (CG) a "Buy" — based on 25 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, The Carlyle Group Inc.

(CG) is the cheapest at 23. 3x versus Ares Management Corporation at 63. 2x. On forward P/E, The Carlyle Group Inc. is actually cheaper at 11. 8x.

Over the past 5 years, Ares Management Corporation (ARES) delivered a total return of +161.

3%, compared to +27. 9% for The Carlyle Group Inc. (CG). Over 10 years, the gap is even starker: ARES returned +938. 3% versus CG's +292. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Ares Management Corporation (ARES) is the lower-risk stock at 1.

62β versus The Carlyle Group Inc. 's 1. 88β — meaning CG is approximately 16% more volatile than ARES relative to the S&P 500. On balance sheet safety, Ares Management Corporation (ARES) carries a lower debt/equity ratio of 171% versus 197% for The Carlyle Group Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Ares Management Corporation (ARES) is pulling ahead at 66.

6% versus 19. 8% for The Carlyle Group Inc. (CG). On earnings-per-share growth, the picture is similar: Ares Management Corporation grew EPS -5. 3% year-over-year, compared to -21. 3% for The Carlyle Group Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The Carlyle Group Inc.

(CG) is the more profitable company, earning 16. 5% net margin versus 8. 2% for Ares Management Corporation — meaning it keeps 16. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ARES leads at 27. 2% versus 26. 2% for CG. At the gross margin level — before operating expenses — ARES leads at 74. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, The Carlyle Group Inc.

(CG) trades at 11. 8x forward P/E versus 20. 3x for Ares Management Corporation — 8. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARES: 43. 2% to $177. 38.

All stocks in this comparison pay dividends.

Ares Management Corporation (ARES) offers the highest yield at 6. 5%, versus 2. 7% for The Carlyle Group Inc. (CG).

For long-horizon retirement investors, Ares Management Corporation (ARES) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (6.

5% yield, +938. 3% 10Y return). The Carlyle Group Inc. (CG) carries a higher beta of 1. 88 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ARES: +938. 3%, CG: +292. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.