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ARES vs BRK-A

ARES
Ares Management Corporation
NEUTRAL
Price
$155.89
Market Cap
$51.07B
Sector
Financial Services
AI Confidence
68%
BRK-A
Berkshire Hathaway Inc.
BEARISH
Price
$718921.00
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
65%

Valuation

P/E Ratio
ARES
68.07
BRK-A
15.45
Forward P/E
ARES
23.77
BRK-A
22.3
P/B Ratio
ARES
11.4
BRK-A
1.44
P/S Ratio
ARES
9.54
BRK-A
2.78
EV/EBITDA
ARES
38.71
BRK-A
7.21

Profitability

Gross Margin
ARES
37.19%
BRK-A
26.15%
Operating Margin
ARES
24.1%
BRK-A
32.96%
Profit Margin
ARES
12.14%
BRK-A
18.03%
ROE
ARES
17.09%
BRK-A
9.81%
ROA
ARES
2.68%
BRK-A
5.11%

Growth

Revenue Growth
ARES
46.7%
BRK-A
-0.7%
Earnings Growth
ARES
108.8%
BRK-A
-2.5%

Financial Health

Debt/Equity
ARES
1.47
BRK-A
0.19
Current Ratio
ARES
0.49
BRK-A
7.07
Quick Ratio
ARES
0.43
BRK-A
6.62

Dividends

Dividend Yield
ARES
2.77%
BRK-A
--
Payout Ratio
ARES
181.01%
BRK-A
0.0%

AI Verdict

ARES NEUTRAL

ARES exhibits strong fundamental health with a Piotroski F-Score of 7/9, indicating solid profitability and operational efficiency. However, the stock trades at a significant premium to both Graham's defensive value ($26.55) and intrinsic value ($67.56), currently priced at $155.89, reflecting high growth expectations. While revenue and earnings growth are robust—46.7% and 108.8% YoY respectively—the elevated valuation metrics (P/E of 68.07, P/B of 11.40) and bearish insider activity raise sustainability concerns. The technical trend is bearish, and the dividend payout ratio of 181% signals potential instability in income sustainability.

Strengths
Strong Piotroski F-Score of 7/9 indicates high financial health and consistent profitability
Exceptional year-over-year revenue (46.7%) and earnings growth (108.8%)
High return on equity (17.09%) outperforms sector average despite negative peer ROE
Risks
Extremely high P/E ratio (68.07) vs sector average (21.16) suggests overvaluation
Dividend payout ratio of 181.01% is unsustainable long-term
Insider selling of $562.11M in the last 6 months signals lack of confidence from executives
BRK-A BEARISH

BRK-A shows bearish fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Concerns include weak profitability or high valuation.

Strengths
Low debt with D/E ratio of 0.19
Risks
Weak financial trend (Piotroski F-Score: 3/9)
Declining revenue (-0.7%)

Compare Another Pair

ARES vs BRK-A: Head-to-Head Comparison

This page compares Ares Management Corporation (ARES) and Berkshire Hathaway Inc. (BRK-A) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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