Ares Management (NYSE:ARES) and Coinbase Global (NASDAQ:COIN) Critical Comparison

Coinbase Global (NASDAQ:COIN) and Ares Management (NYSE:ARES) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Valuation and Earnings

This table compares Coinbase Global and Ares Management”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coinbase Global	$7.18 billion	6.56	$1.26 billion	($3.84)	-46.47
Ares Management	$5.60 billion	6.83	$527.36 million	$2.18	53.10

Coinbase Global has higher revenue and earnings than Ares Management. Coinbase Global 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 Coinbase Global and Ares Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coinbase Global	-15.72%	3.12%	1.54%
Ares Management	10.63%	25.42%	6.35%

Institutional and Insider Ownership

68.8% of Coinbase Global shares are owned by institutional investors. Comparatively, 50.0% of Ares Management shares are owned by institutional investors. 16.7% of Coinbase Global shares are owned by company insiders. Comparatively, 34.7% of Ares Management shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Coinbase Global has a beta of 3.41, suggesting that its stock price is 241% more volatile than the S&P 500. Comparatively, Ares Management has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Coinbase Global and Ares Management, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coinbase Global	3	13	20	0	2.47
Ares Management	0	6	12	1	2.74

Coinbase Global currently has a consensus price target of $225.44, indicating a potential upside of 26.33%. Ares Management has a consensus price target of $156.00, indicating a potential upside of 34.75%. Given Ares Management’s stronger consensus rating and higher probable upside, analysts plainly believe Ares Management is more favorable than Coinbase Global.

Summary

Ares Management beats Coinbase Global on 10 of the 15 factors compared between the two stocks.

About Coinbase Global

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.

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.