Comparing Ares Management (NYSE:ARES) and Puhui Wealth Investment Managemnt (NYSE:PHCF)

Ares Management (NYSE:ARES) and Puhui Wealth Investment Managemnt (NASDAQ:PHCF) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Earnings & Valuation

This table compares Ares Management and Puhui Wealth Investment Managemnt’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ares Management $958.46 million 3.08 $57.02 million $1.42 20.12
Puhui Wealth Investment Managemnt $4.13 million 7.57 $470,000.00 N/A N/A

Ares Management has higher revenue and earnings than Puhui Wealth Investment Managemnt.

Profitability

This table compares Ares Management and Puhui Wealth Investment Managemnt’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ares Management 5.22% 25.86% 2.95%
Puhui Wealth Investment Managemnt N/A N/A N/A

Insider & Institutional Ownership

60.0% of Ares Management shares are held by institutional investors. Comparatively, 0.2% of Puhui Wealth Investment Managemnt shares are held by institutional investors. 151.6% of Ares Management shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Ares Management pays an annual dividend of $1.28 per share and has a dividend yield of 4.5%. Puhui Wealth Investment Managemnt does not pay a dividend. Ares Management pays out 90.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ares Management has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for Ares Management and Puhui Wealth Investment Managemnt, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ares Management 0 1 4 0 2.80
Puhui Wealth Investment Managemnt 0 0 0 0 N/A

Ares Management presently has a consensus price target of $24.60, suggesting a potential downside of 13.90%. Given Ares Management’s higher possible upside, research analysts plainly believe Ares Management is more favorable than Puhui Wealth Investment Managemnt.

Summary

Ares Management beats Puhui Wealth Investment Managemnt on 11 of the 13 factors compared between the two stocks.

About Ares Management

Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. The company's Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies. The company's Private Equity Group segment focuses on majority or shared-control investments primarily in under-capitalized companies. Its Real Estate Group segment invests in new developments and the repositioning of assets, with a focus on control or majority-control investments; and originates and invests in a range of self-originated financing opportunities for middle-market owners and operators of commercial real estate. The firm was previously known as Ares Management, L.P. Ares Management Corporation was founded in 1997 and is headquartered in Los Angeles, California with additional offices in the United States, Europe and Asia. Ares Management GP LLC is the general partner of the company.

About Puhui Wealth Investment Managemnt

Puhui Wealth Investment Management Co., Ltd., through its subsidiaries, provides third-party wealth management services in the People's Republic of China. It manages funds for individuals and corporate clients. Puhui Wealth Investment Management Co., Ltd. has a strategic cooperation agreement with YINGKE Innovation Asset Management Co., Ltd. to jointly establish an equity investment fund. The company was founded in 2013 and is headquartered in Beijing, China.

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