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HLNE vs ARES
Revenue, margins, valuation, and 5-year total return — side by side.
Asset Management
HLNE vs ARES — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Asset Management | Asset Management |
| Market Cap | $4.41B | $40.38B |
| Revenue (TTM) | $713M | $6.47B |
| Net Income (TTM) | $206M | $527M |
| Gross Margin | 70.8% | 74.8% |
| Operating Margin | 44.4% | 27.2% |
| Forward P/E | 15.3x | 20.2x |
| Total Debt | $368M | $14.91B |
| Cash & Equiv. | $277M | $1.50B |
HLNE vs ARES — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Hamilton Lane Incor… (HLNE) | 100 | 126.3 | +26.3% |
| Ares Management Cor… (ARES) | 100 | 325.6 | +225.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: HLNE vs ARES
Each card shows where this stock fits in a portfolio — not just who wins on paper.
HLNE carries the broadest edge in this set and is the clearest fit for sleep-well-at-night and valuation efficiency.
- Lower volatility, beta 1.25, Low D/E 39.9%, current ratio 1.68x
- PEG 0.75 vs ARES's 1.15
- Lower P/E (15.3x vs 20.2x), PEG 0.75 vs 1.15
ARES is the clearest fit if your priority is income & stability and growth exposure.
- Dividend streak 7 yrs, beta 1.62, yield 6.6%
- Rev growth 66.6%, EPS growth -5.3%
- 9.3% 10Y total return vs HLNE's 483.9%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 66.6% NII/revenue growth vs HLNE's 28.7% | |
| Value | Lower P/E (15.3x vs 20.2x), PEG 0.75 vs 1.15 | |
| Quality / Margins | Efficiency ratio 0.3% vs ARES's 0.5% (lower = leaner) | |
| Stability / Safety | Beta 1.25 vs ARES's 1.62, lower leverage | |
| Dividends | 6.6% yield, 7-year raise streak, vs HLNE's 2.7% | |
| Momentum (1Y) | -20.6% vs HLNE's -41.0% | |
| Efficiency (ROA) | Efficiency ratio 0.3% vs ARES's 0.5% |
HLNE vs ARES — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
HLNE vs ARES — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
HLNE leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
ARES is the larger business by revenue, generating $6.5B annually — 9.1x HLNE's $713M. HLNE is the more profitable business, keeping 30.5% of every revenue dollar as net income compared to ARES's 8.2%.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $713M | $6.5B |
| EBITDAEarnings before interest/tax | $320M | $1.8B |
| Net IncomeAfter-tax profit | $206M | $527M |
| Free Cash FlowCash after capex | $364M | $1.5B |
| Gross MarginGross profit ÷ Revenue | +70.8% | +74.8% |
| Operating MarginEBIT ÷ Revenue | +44.4% | +27.2% |
| Net MarginNet income ÷ Revenue | +30.5% | +8.2% |
| FCF MarginFCF ÷ Revenue | +43.7% | +23.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -56.8% | -80.9% |
Valuation Metrics
HLNE leads this category, winning 6 of 7 comparable metrics.
Valuation Metrics
At 17.1x trailing earnings, HLNE trades at a 73% valuation discount to ARES's 62.7x P/E. Adjusting for growth (PEG ratio), HLNE offers better value at 0.84x vs ARES's 3.56x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ||
|---|---|---|
| Market CapShares × price | $4.4B | $40.4B |
| Enterprise ValueMkt cap + debt − cash | $4.5B | $53.8B |
| Trailing P/EPrice ÷ TTM EPS | 17.08x | 62.73x |
| Forward P/EPrice ÷ next-FY EPS est. | 15.34x | 20.19x |
| PEG RatioP/E ÷ EPS growth rate | 0.84x | 3.56x |
| EV / EBITDAEnterprise value multiple | 13.82x | 26.85x |
| Price / SalesMarket cap ÷ Revenue | 6.19x | 6.24x |
| Price / BookPrice ÷ Book value/share | 4.77x | 3.07x |
| Price / FCFMarket cap ÷ FCF | 14.17x | 26.15x |
Profitability & Efficiency
HLNE leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
HLNE delivers a 15.6% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $6 for ARES. HLNE carries lower financial leverage with a 0.40x debt-to-equity ratio, signaling a more conservative balance sheet compared to ARES's 1.71x. On the Piotroski fundamental quality scale (0–9), ARES scores 8/9 vs HLNE's 7/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +15.6% | +6.2% |
| ROA (TTM)Return on assets | +9.5% | +1.9% |
| ROICReturn on invested capital | +21.2% | +6.1% |
| ROCEReturn on capital employed | +26.2% | +7.3% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 8 |
| Debt / EquityFinancial leverage | 0.40x | 1.71x |
| Net DebtTotal debt minus cash | $91M | $13.4B |
| Cash & Equiv.Liquid assets | $277M | $1.5B |
| Total DebtShort + long-term debt | $368M | $14.9B |
| Interest CoverageEBIT ÷ Interest expense | 25.57x | 2.68x |
Total Returns (Dividends Reinvested)
ARES leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ARES five years ago would be worth $26,555 today (with dividends reinvested), compared to $11,150 for HLNE. Over the past 12 months, ARES leads with a -20.6% total return vs HLNE's -41.0%. The 3-year compound annual growth rate (CAGR) favors ARES at 18.1% vs HLNE's 13.5% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -32.0% | -25.3% |
| 1-Year ReturnPast 12 months | -41.0% | -20.6% |
| 3-Year ReturnCumulative with dividends | +46.1% | +64.5% |
| 5-Year ReturnCumulative with dividends | +11.5% | +165.5% |
| 10-Year ReturnCumulative with dividends | +483.9% | +934.1% |
| CAGR (3Y)Annualised 3-year return | +13.5% | +18.1% |
Risk & Volatility
Evenly matched — HLNE and ARES each lead in 1 of 2 comparable metrics.
Risk & Volatility
HLNE is the less volatile stock with a 1.25 beta — it tends to amplify market swings less than ARES's 1.62 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ARES currently trades 63.0% from its 52-week high vs HLNE's 51.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.25x | 1.62x |
| 52-Week HighHighest price in past year | $179.19 | $195.26 |
| 52-Week LowLowest price in past year | $86.47 | $95.80 |
| % of 52W HighCurrent price vs 52-week peak | +51.6% | +63.0% |
| RSI (14)Momentum oscillator 0–100 | 39.1 | 58.9 |
| Avg Volume (50D)Average daily shares traded | 852K | 3.7M |
Analyst Outlook
ARES leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates HLNE as "Buy" and ARES as "Buy". Consensus price targets imply 85.6% upside for HLNE (target: $172) vs 44.3% for ARES (target: $177). For income investors, ARES offers the higher dividend yield at 6.57% vs HLNE's 2.72%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $171.50 | $177.38 |
| # AnalystsCovering analysts | 10 | 22 |
| Dividend YieldAnnual dividend ÷ price | +2.7% | +6.6% |
| Dividend StreakConsecutive years of raises | 1 | 7 |
| Dividend / ShareAnnual DPS | $2.51 | $8.08 |
| Buyback YieldShare repurchases ÷ mkt cap | +5.8% | 0.0% |
HLNE leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). ARES leads in 2 (Total Returns, Analyst Outlook). 1 tied.
HLNE vs ARES: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is HLNE or ARES a better buy right now?
For growth investors, Ares Management Corporation (ARES) is the stronger pick with 66.
6% revenue growth year-over-year, versus 28. 7% for Hamilton Lane Incorporated (HLNE). Hamilton Lane Incorporated (HLNE) offers the better valuation at 17. 1x trailing P/E (15. 3x forward), making it the more compelling value choice. Analysts rate Hamilton Lane Incorporated (HLNE) a "Buy" — based on 10 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.
02Which has the better valuation — HLNE or ARES?
On trailing P/E, Hamilton Lane Incorporated (HLNE) is the cheapest at 17.
1x versus Ares Management Corporation at 62. 7x. On forward P/E, Hamilton Lane Incorporated is actually cheaper at 15. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Hamilton Lane Incorporated wins at 0. 75x versus Ares Management Corporation's 1. 15x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — HLNE or ARES?
Over the past 5 years, Ares Management Corporation (ARES) delivered a total return of +165.
5%, compared to +11. 5% for Hamilton Lane Incorporated (HLNE). Over 10 years, the gap is even starker: ARES returned +934. 1% versus HLNE's +483. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — HLNE or ARES?
By beta (market sensitivity over 5 years), Hamilton Lane Incorporated (HLNE) is the lower-risk stock at 1.
25β versus Ares Management Corporation's 1. 62β — meaning ARES is approximately 29% more volatile than HLNE relative to the S&P 500. On balance sheet safety, Hamilton Lane Incorporated (HLNE) carries a lower debt/equity ratio of 40% versus 171% for Ares Management Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — HLNE or ARES?
By revenue growth (latest reported year), Ares Management Corporation (ARES) is pulling ahead at 66.
6% versus 28. 7% for Hamilton Lane Incorporated (HLNE). On earnings-per-share growth, the picture is similar: Hamilton Lane Incorporated grew EPS 46. 6% year-over-year, compared to -5. 3% for Ares Management Corporation. 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.
06Which has better profit margins — HLNE or ARES?
Hamilton Lane Incorporated (HLNE) is the more profitable company, earning 30.
5% net margin versus 8. 2% for Ares Management Corporation — meaning it keeps 30. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HLNE leads at 44. 4% versus 27. 2% for ARES. 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.
07Is HLNE or ARES more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.
By this metric, Hamilton Lane Incorporated (HLNE) is the more undervalued stock at a PEG of 0. 75x versus Ares Management Corporation's 1. 15x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Hamilton Lane Incorporated (HLNE) trades at 15. 3x forward P/E versus 20. 2x for Ares Management Corporation — 4. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HLNE: 85. 6% to $171. 50.
08Which pays a better dividend — HLNE or ARES?
All stocks in this comparison pay dividends.
Ares Management Corporation (ARES) offers the highest yield at 6. 6%, versus 2. 7% for Hamilton Lane Incorporated (HLNE).
09Is HLNE or ARES better for a retirement portfolio?
For long-horizon retirement investors, Hamilton Lane Incorporated (HLNE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.
25), 2. 7% yield, +483. 9% 10Y return). Ares Management Corporation (ARES) carries a higher beta of 1. 62 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (HLNE: +483. 9%, ARES: +934. 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.
10What are the main differences between HLNE and ARES?
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.
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