Analyzing Highest Performances (NASDAQ:HPH) and Ares Management (NYSE:ARES)

Highest Performances (NASDAQ:HPH) and Ares Management (NYSE:ARES) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Highest Performances	N/A	N/A	N/A
Ares Management	12.53%	20.46%	3.84%

Analyst Ratings

This is a summary of recent recommendations for Highest Performances and Ares Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Highest Performances	0	0	0	0	N/A
Ares Management	0	6	6	0	2.50

Ares Management has a consensus target price of $141.42, suggesting a potential downside of 7.46%. Given Ares Management’s higher probable upside, analysts plainly believe Ares Management is more favorable than Highest Performances.

Volatility & Risk

Highest Performances has a beta of -0.31, indicating that its share price is 131% less volatile than the S&P 500. Comparatively, Ares Management has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Earnings and Valuation

This table compares Highest Performances and Ares Management”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Highest Performances	$15.78 million	9.03	-$6.01 million	N/A	N/A
Ares Management	$4.65 billion	10.15	$474.33 million	$2.23	68.35

Ares Management has higher revenue and earnings than Highest Performances.

Insider and Institutional Ownership

50.0% of Ares Management shares are owned by institutional investors. 87.6% of Highest Performances shares are owned by insiders. Comparatively, 1.2% of Ares Management shares are owned 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.

Summary

Ares Management beats Highest Performances on 10 of the 11 factors compared between the two stocks.

About Highest Performances

Highest Performances Holdings Inc. engages in the provision of financial technology services in China. The company distributes publicly raised fund and privately raised securities investment fund products through online and offline. It also offers insurance consulting, trust consulting, asset management, wealth management, and other ancillary services. The company was formerly known as Puyi Inc. and changed its name to Highest Performances Holdings Inc. in March 2024. Highest Performances Holdings Inc. was founded in 2010 and is headquartered in Guangzhou, China.

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.