STEP
StepStone Group Inc.
Asset Management
Market Cap$2.11B
5Y Perf.+103.6%
Compare Stocks
2 / 10Try these comparisons:
Stock Comparison
STEP vs ARES
Revenue, margins, valuation, and 5-year total return — side by side.
ARES
Ares Management Corporation
Asset Management
Market Cap$40.44B
5Y Perf.+204.7%
STEP vs ARES — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | STEP | ARES |
|---|---|---|
| Industry | Asset Management | Asset Management |
| Market Cap | $2.11B | $40.44B |
| Revenue (TTM) | $1.17B | $6.47B |
| Net Income (TTM) | $-547M | $527M |
| Gross Margin | -7.6% | 74.8% |
| Operating Margin | -21.3% | 27.2% |
| Forward P/E | 25.9x | 20.2x |
| Total Debt | $383M | $14.91B |
| Cash & Equiv. | $289M | $1.50B |
STEP vs ARES — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
STEP
ARES
| Stock | Sep 20 | May 26 | Return |
|---|---|---|---|
| StepStone Group Inc. (STEP) | 100 | 203.6 | +103.6% |
| Ares Management Cor… (ARES) | 100 | 304.7 | +204.7% |
Price return only. Dividends and distributions are not included.
Quick Verdict: STEP vs ARES
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ARES leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. StepStone Group Inc. is the stronger pick specifically for profitability and margin quality and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
STEP
StepStone Group Inc.
The Banking Pick
STEP is the clearest fit if your priority is quality and momentum.
- Efficiency ratio 0.1% vs ARES's 0.5% (lower = leaner)
- +3.9% vs ARES's -21.1%
- Efficiency ratio 0.1% vs ARES's 0.5%
Best for: quality and momentum
ARES
Ares Management Corporation
The Banking Pick
ARES carries the broadest edge in this set and is the clearest fit for 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 STEP's 136.6%
Best for: income & stability and growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | ARES | 66.6% NII/revenue growth vs STEP's 65.1% |
| Value | ARES | Lower P/E (20.2x vs 25.9x) |
| Quality / Margins | STEP | Efficiency ratio 0.1% vs ARES's 0.5% (lower = leaner) |
| Stability / Safety | ARES | Beta 1.62 vs STEP's 1.73 |
| Dividends | ARES | 6.6% yield, 7-year raise streak, vs STEP's 2.0% |
| Momentum (1Y) | STEP | +3.9% vs ARES's -21.1% |
| Efficiency (ROA) | STEP | Efficiency ratio 0.1% vs ARES's 0.5% |
STEP vs ARES — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
STEP vs ARES — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLARESLAGGINGSTEP
STEPStepStone Group Inc.
2leads
ARESAres Management Corpo…
3leads
6 Total Categories
CATEGORYLEADERvs STEPMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ARES4/5
Valuation MetricsMultiples, price ratios, and targets
STEP3/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ARES6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
STEP4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
ARES2/2
Income & Cash Flow (Last 12 Months)
ARES 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 — 5.5x STEP's $1.2B. ARES is the more profitable business, keeping 8.2% of every revenue dollar as net income compared to STEP's -15.3%.
| Metric | STEPStepStone Group I… | ARESAres Management C… |
|---|---|---|
| RevenueTrailing 12 months | $1.2B | $6.5B |
| EBITDAEarnings before interest/tax | -$948M | $1.8B |
| Net IncomeAfter-tax profit | -$547M | $527M |
| Free Cash FlowCash after capex | $19M | $1.5B |
| Gross MarginGross profit ÷ Revenue | -7.6% | +74.8% |
| Operating MarginEBIT ÷ Revenue | -21.3% | +27.2% |
| Net MarginNet income ÷ Revenue | -15.3% | +8.2% |
| FCF MarginFCF ÷ Revenue | +5.1% | +23.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +40.6% | -80.9% |
ARES leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
STEP leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
| Metric | STEPStepStone Group I… | ARESAres Management C… |
|---|---|---|
| Market CapShares × price | $2.1B | $40.4B |
| Enterprise ValueMkt cap + debt − cash | $2.2B | $53.9B |
| Trailing P/EPrice ÷ TTM EPS | -21.50x | 62.83x |
| Forward P/EPrice ÷ next-FY EPS est. | 25.90x | 20.23x |
| PEG RatioP/E ÷ EPS growth rate | — | 3.56x |
| EV / EBITDAEnterprise value multiple | — | 26.88x |
| Price / SalesMarket cap ÷ Revenue | 1.80x | 6.25x |
| Price / BookPrice ÷ Book value/share | 2.17x | 3.08x |
| Price / FCFMarket cap ÷ FCF | 35.34x | 26.19x |
STEP leads this category, winning 3 of 5 comparable metrics.
Profitability & Efficiency
ARES leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
ARES delivers a 6.2% return on equity — every $100 of shareholder capital generates $6 in annual profit, vs $-10 for STEP. STEP carries lower financial leverage with a 0.22x 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 STEP's 4/9, reflecting strong financial health.
| Metric | STEPStepStone Group I… | ARESAres Management C… |
|---|---|---|
| ROE (TTM)Return on equity | -9.8% | +6.2% |
| ROA (TTM)Return on assets | -10.4% | +1.9% |
| ROICReturn on invested capital | -8.7% | +6.1% |
| ROCEReturn on capital employed | -10.6% | +7.3% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 8 |
| Debt / EquityFinancial leverage | 0.22x | 1.71x |
| Net DebtTotal debt minus cash | $93M | $13.4B |
| Cash & Equiv.Liquid assets | $289M | $1.5B |
| Total DebtShort + long-term debt | $383M | $14.9B |
| Interest CoverageEBIT ÷ Interest expense | -126.38x | 2.68x |
ARES leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
STEP leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ARES five years ago would be worth $26,021 today (with dividends reinvested), compared to $17,862 for STEP. Over the past 12 months, STEP leads with a +3.9% total return vs ARES's -21.1%. The 3-year compound annual growth rate (CAGR) favors STEP at 38.3% vs ARES's 18.1% — a key indicator of consistent wealth creation.
| Metric | STEPStepStone Group I… | ARESAres Management C… |
|---|---|---|
| YTD ReturnYear-to-date | -18.2% | -25.1% |
| 1-Year ReturnPast 12 months | +3.9% | -21.1% |
| 3-Year ReturnCumulative with dividends | +164.7% | +64.7% |
| 5-Year ReturnCumulative with dividends | +78.6% | +160.2% |
| 10-Year ReturnCumulative with dividends | +136.6% | +929.6% |
| CAGR (3Y)Annualised 3-year return | +38.3% | +18.1% |
STEP leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — STEP and ARES each lead in 1 of 2 comparable metrics.
Risk & Volatility
ARES is the less volatile stock with a 1.62 beta — it tends to amplify market swings less than STEP's 1.73 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. STEP currently trades 69.7% from its 52-week high vs ARES's 63.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | STEPStepStone Group I… | ARESAres Management C… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.73x | 1.62x |
| 52-Week HighHighest price in past year | $77.80 | $195.26 |
| 52-Week LowLowest price in past year | $40.58 | $95.80 |
| % of 52W HighCurrent price vs 52-week peak | +69.7% | +63.1% |
| RSI (14)Momentum oscillator 0–100 | 55.3 | 63.2 |
| Avg Volume (50D)Average daily shares traded | 1.1M | 3.7M |
Evenly matched — STEP and ARES each lead in 1 of 2 comparable metrics.
Analyst Outlook
ARES leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates STEP as "Buy" and ARES as "Buy". Consensus price targets imply 44.0% upside for ARES (target: $177) vs 33.8% for STEP (target: $73). For income investors, ARES offers the higher dividend yield at 6.56% vs STEP's 1.97%.
| Metric | STEPStepStone Group I… | ARESAres Management C… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $72.50 | $177.38 |
| # AnalystsCovering analysts | 8 | 22 |
| Dividend YieldAnnual dividend ÷ price | +2.0% | +6.6% |
| Dividend StreakConsecutive years of raises | 4 | 7 |
| Dividend / ShareAnnual DPS | $1.07 | $8.08 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
ARES leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
ARES leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). STEP leads in 2 (Valuation Metrics, Total Returns). 1 tied.
Best OverallAres Management Corporation (ARES)Leads 3 of 6 categories
Loading custom metrics...
STEP vs ARES: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is STEP 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 65. 1% for StepStone Group Inc. (STEP). Ares Management Corporation (ARES) offers the better valuation at 62. 8x trailing P/E (20. 2x forward), making it the more compelling value choice. Analysts rate StepStone Group Inc. (STEP) a "Buy" — based on 8 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 — STEP or ARES?
On forward P/E, Ares Management Corporation is actually cheaper at 20.
2x.
03Which is the better long-term investment — STEP or ARES?
Over the past 5 years, Ares Management Corporation (ARES) delivered a total return of +160.
2%, compared to +78. 6% for StepStone Group Inc. (STEP). Over 10 years, the gap is even starker: ARES returned +929. 6% versus STEP's +136. 6%. 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 — STEP or ARES?
By beta (market sensitivity over 5 years), Ares Management Corporation (ARES) is the lower-risk stock at 1.
62β versus StepStone Group Inc. 's 1. 73β — meaning STEP is approximately 7% more volatile than ARES relative to the S&P 500. On balance sheet safety, StepStone Group Inc. (STEP) carries a lower debt/equity ratio of 22% versus 171% for Ares Management Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — STEP or ARES?
By revenue growth (latest reported year), Ares Management Corporation (ARES) is pulling ahead at 66.
6% versus 65. 1% for StepStone Group Inc. (STEP). On earnings-per-share growth, the picture is similar: Ares Management Corporation grew EPS -5. 3% year-over-year, compared to -376. 9% for StepStone 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.
06Which has better profit margins — STEP or ARES?
Ares Management Corporation (ARES) is the more profitable company, earning 8.
2% net margin versus -15. 3% for StepStone Group Inc. — 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 -21. 3% for STEP. 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 STEP or ARES more undervalued right now?
On forward earnings alone, Ares Management Corporation (ARES) trades at 20.
2x forward P/E versus 25. 9x for StepStone Group Inc. — 5. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARES: 44. 0% to $177. 38.
08Which pays a better dividend — STEP or ARES?
All stocks in this comparison pay dividends.
Ares Management Corporation (ARES) offers the highest yield at 6. 6%, versus 2. 0% for StepStone Group Inc. (STEP).
09Is STEP or ARES better for a retirement portfolio?
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.
6% yield, +929. 6% 10Y return). StepStone Group Inc. (STEP) carries a higher beta of 1. 73 — 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: +929. 6%, STEP: +136. 6%), 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 STEP 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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
- Sector: Financial Services
- Market Cap > $100B
- Revenue Growth > 32%
- Dividend Yield > 0.7%
Revenue Growth>
%
(STEP: 65.1% · ARES: 66.6%)You Might Also Compare
Based on how these companies actually compete and overlap — not just which sector they're filed under.