Ares ManagementSoFi

Ares Management vs SoFi

This page compares Ares Management Corp and SoFi Technologies, Inc., examining their business models, financial performance, and market context in a neutral, accessible way. Educational content, not f...

Why It's Moving

Ares Management

Ares Management surges on S&P 500 entry and bold $350M tech bet.

  • S&P 500 inclusion on Dec 11 signals market trust, sparking a 6.91%-7.32% stock rally as investors pile in[1][2].
  • $350M infusion catapults MGT to unicorn status, highlighting Ares' confidence in its SLED tech expansion potential[1][2].
  • Goldman Sachs slaps a Buy rating, forecasting over 20% earnings growth ahead, with shares trading at a peer discount[1].
Sentiment:
🐃Bullish
SoFi

SoFi Powers Ahead with Fresh Capital Raise as Profit Momentum Builds

  • Priced public stock offering expected to close December 8, providing capital for scaling operations and member growth[3].
  • Q3 2025 net income more than doubled year-over-year to $139.4 million, showcasing robust profitability gains[2].
  • Analysts spotlight SoFi as a top fast-growing financial services player, sparking 2026 upside debates[1].
Sentiment:
🐃Bullish

Which Baskets Do They Appear In?

The Dealmakers: M&A Boom

The Dealmakers: M&A Boom

A carefully selected group of financial institutions driving today's surge in mergers and acquisitions. These companies are the architects behind billion-dollar deals, earning significant fees as corporate dealmaking accelerates.

Published: June 30, 2025

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Investment Analysis

Pros

  • Ares Management reported strong third quarter 2025 GAAP net income of $288.9 million, reflecting robust profitability.
  • The company manages approximately $395 billion in assets, demonstrating scale and global reach across multiple asset classes.
  • Ares offers diversified investment solutions in credit, private equity, real estate, and infrastructure, reducing reliance on any single sector.

Considerations

  • Ares Management's price-to-earnings ratio is significantly higher than many peers, suggesting a premium valuation.
  • The business is exposed to market cycles and may face headwinds during periods of economic downturn or rising interest rates.
  • Ares relies on external management for certain funds, which could introduce operational and reputational risks.
SoFi

SoFi

SOFI

Pros

  • SoFi Technologies has expanded its product suite beyond student loans into banking, investing, and personal finance, broadening its revenue base.
  • The company continues to grow its active member base, indicating strong customer acquisition and retention trends.
  • SoFi has demonstrated improving profitability and operational efficiency in recent quarters.

Considerations

  • SoFi's stock trades at a high price-to-earnings ratio compared to traditional financial institutions, reflecting elevated market expectations.
  • The company's growth is sensitive to interest rates and macroeconomic conditions, particularly in lending and deposit margins.
  • SoFi faces intense competition from both fintech startups and established financial services firms, which could pressure margins.

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