STEP vs ARES vs APO vs HLI

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

6% revenue growth year-over-year, versus 16. 0% for Apollo Global Management, Inc. (APO). Apollo Global Management, Inc. (APO) offers the better valuation at 17. 6x trailing P/E (14. 4x 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.

On trailing P/E, Apollo Global Management, Inc.

(APO) is the cheapest at 17. 6x versus Ares Management Corporation at 62. 8x. On forward P/E, Apollo Global Management, Inc. is actually cheaper at 14. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Apollo Global Management, Inc. wins at 0. 19x versus Houlihan Lokey, Inc. 's 1. 26x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

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 +142. 8%. 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), Houlihan Lokey, Inc.

(HLI) is the lower-risk stock at 0. 94β versus StepStone Group Inc. 's 1. 65β — meaning STEP is approximately 75% more volatile than HLI relative to the S&P 500. On balance sheet safety, Houlihan Lokey, Inc. (HLI) carries a lower debt/equity ratio of 20% versus 171% for Ares Management Corporation — 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 16. 0% for Apollo Global Management, Inc. (APO). On earnings-per-share growth, the picture is similar: Houlihan Lokey, Inc. grew EPS 41. 6% 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.

Houlihan Lokey, Inc.

(HLI) is the more profitable company, earning 16. 7% net margin versus -15. 3% for StepStone Group Inc. — meaning it keeps 16. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: APO leads at 34. 4% versus -21. 3% for STEP. At the gross margin level — before operating expenses — APO leads at 88. 5%, 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.

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, Apollo Global Management, Inc. (APO) is the more undervalued stock at a PEG of 0. 19x versus Houlihan Lokey, Inc. 's 1. 26x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Apollo Global Management, Inc. (APO) trades at 14. 4x forward P/E versus 25. 9x for StepStone Group Inc. — 11. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARES: 44. 0% to $177. 38.

All stocks in this comparison pay dividends.

Ares Management Corporation (ARES) offers the highest yield at 6. 6%, versus 1. 6% for Houlihan Lokey, Inc. (HLI).

For long-horizon retirement investors, Houlihan Lokey, Inc.

(HLI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 94), 1. 6% yield, +603. 4% 10Y return). StepStone Group Inc. (STEP) carries a higher beta of 1. 65 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (HLI: +603. 4%, STEP: +142. 8%), 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.