CODI vs ARES

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

6% revenue growth year-over-year, versus 4. 8% for Compass Diversified (CODI). Ares Management Corporation (ARES) offers the better valuation at 63. 2x trailing P/E (20. 3x forward), making it the more compelling value choice. Analysts rate Ares Management Corporation (ARES) a "Buy" — based on 22 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 forward P/E, Ares Management Corporation is actually cheaper at 20.

3x.

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

3%, compared to -37. 0% for Compass Diversified (CODI). Over 10 years, the gap is even starker: ARES returned +938. 3% versus CODI's +52. 1%. 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), Compass Diversified (CODI) is the lower-risk stock at 1.

09β versus Ares Management Corporation's 1. 62β — meaning ARES is approximately 49% more volatile than CODI relative to the S&P 500. On balance sheet safety, Ares Management Corporation (ARES) carries a lower debt/equity ratio of 171% versus 3% for Compass Diversified — 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 4. 8% for Compass Diversified (CODI). On earnings-per-share growth, the picture is similar: Ares Management Corporation grew EPS -5. 3% year-over-year, compared to -1426. 1% for Compass Diversified. 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.

Ares Management Corporation (ARES) is the more profitable company, earning 8.

2% net margin versus -12. 2% for Compass Diversified — meaning it keeps 8. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ARES leads at 27. 2% versus 2. 3% for CODI. 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, Ares Management Corporation (ARES) trades at 20.

3x forward P/E versus 145. 3x for Compass Diversified — 124. 9x 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 4. 3% for Compass Diversified (CODI).

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). Both have compounded well over 10 years (ARES: +938. 3%, CODI: +52. 1%), 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.

These companies operate in different sectors (CODI (Industrials) and ARES (Financial Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: CODI is a small-cap income-oriented stock; ARES is a mid-cap high-growth stock. 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.