The stability analysis for nonlinear differential-algebraic systems is addressed using tools from classical control theory. Sufficient stability conditions relying on matrix inequalities are established via Lyapunov Direct Method. In addition, a novel interpretation of differential-algebraic systems as feedback interconnection of a purely differential system and an algebraic system allows reducing the stability analysis to a small-gain-like condition. The study of stability properties for constrained mechanical systems, for a class of Lipschitz differential-algebraic systems and for an academic example is used to illustrate the theory.