Contrasting Resolute Holdings Management (NYSE:RHLD) and Ares Management (NYSE:ARES)

Ares Management (NYSE:ARES) and Resolute Holdings Management (NYSE:RHLD) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Earnings and Valuation

This table compares Ares Management and Resolute Holdings Management”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ares Management	$5.60 billion	7.31	$527.36 million	$2.18	56.88
Resolute Holdings Management	$1.12 billion	0.83	-$5.92 million	$5.43	21.92

Ares Management has higher revenue and earnings than Resolute Holdings Management. Resolute Holdings Management is trading at a lower price-to-earnings ratio than Ares Management, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Ares Management has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Resolute Holdings Management has a beta of -1.31, meaning that its stock price is 231% less volatile than the S&P 500.

Institutional and Insider Ownership

50.0% of Ares Management shares are owned by institutional investors. 34.7% of Ares Management shares are owned by company insiders. Comparatively, 52.8% of Resolute Holdings Management shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Ares Management and Resolute Holdings Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ares Management	10.63%	25.42%	6.35%
Resolute Holdings Management	4.21%	3.55%	1.71%

Analyst Recommendations

This is a summary of recent ratings and target prices for Ares Management and Resolute Holdings Management, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ares Management	0	6	11	1	2.72
Resolute Holdings Management	1	0	0	0	1.00

Ares Management currently has a consensus target price of $160.47, indicating a potential upside of 29.42%. Given Ares Management’s stronger consensus rating and higher probable upside, equities analysts clearly believe Ares Management is more favorable than Resolute Holdings Management.

Summary

Ares Management beats Resolute Holdings Management on 13 of the 15 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 Resolute Holdings Management

Resolute Holdings Management, Inc. operates as an alternative asset management platform company. The company was incorporated in 2024 and is based in New York, New York.