Head to Head Analysis: Medley Management (MDLY) versus Ares Management (ARES)

Medley Management (NYSE: MDLY) and Ares Management (NYSE:ARES) are both investment management companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Earnings and Valuation

This table compares Medley Management and Ares Management’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medley Management $76.03 million 0.48 $990,000.00 $0.24 27.92
Ares Management $1.20 billion 1.32 $111.80 million $0.56 34.46

Ares Management has higher revenue and earnings than Medley Management. Medley 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Medley Management 3.14% -35.40% 14.52%
Ares Management 29.57% 33.20% 4.72%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Medley Management and Ares Management, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medley Management 0 3 0 0 2.00
Ares Management 0 1 6 0 2.86

Medley Management currently has a consensus target price of $9.25, indicating a potential upside of 38.06%. Ares Management has a consensus target price of $21.33, indicating a potential upside of 10.54%. Given Medley Management’s higher probable upside, equities research analysts clearly believe Medley Management is more favorable than Ares Management.

Volatility and Risk

Medley Management has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Ares Management has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Insider and Institutional Ownership

56.9% of Medley Management shares are held by institutional investors. Comparatively, 15.6% of Ares Management shares are held by institutional investors. 5.1% of Medley Management shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Medley Management pays an annual dividend of $0.80 per share and has a dividend yield of 11.9%. Ares Management pays an annual dividend of $1.64 per share and has a dividend yield of 8.5%. Medley Management pays out 333.3% 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 pays out 292.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Ares Management beats Medley Management on 10 of the 16 factors compared between the two stocks.

About Medley Management

Medley Management Inc. is an asset management firm offering yield solutions to retail and institutional investors. The Company operates in the investment management segment. It is focused on credit-related investment strategies, primarily originating senior secured loans to private middle market companies in the United States. The Company generally holds these loans to maturity. Its national direct origination franchise provides capital to the middle market in the United States. The Company has over $4.8 billion of assets under management (AUM) in approximately two business development companies (BDCs), Medley Capital Corporation (MCC) and Sierra Income Corporation (SIC), as well as private investment vehicles. It has over $5 billion of AUM. The Company provides capital to over 300 companies across approximately 35 industries in North America. The Company’s long-dated private funds include MOF I, MOF II and MOF III. Its private funds are managed through partnership structures

About Ares Management

Ares Management, L.P. is an alternative asset manager. The Company offers its investors a range of investment strategies. It operates through three segments: Credit Group, Private Equity Group and Real Estate Group. The Credit Group segment manages credit strategies across the non-investment grade credit universe in the United States and Europe. It offers a range of credit strategies across the liquid and illiquid spectrum, including syndicated loans, high yield bonds, credit opportunities, structured credit investments and the United States and European direct lending. The Credit Group provides solutions for traditional fixed income investors. The Private Equity Group segment categorizes its investment strategies as corporate private equity, the United States power and energy infrastructure and special situations. The Real Estate Group segment manages public and private equity and debt strategies. The Real Estate Group manages both a value-add strategy and an opportunistic strategy.

What are top analysts saying about Medley Management? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Medley Management and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit