Apollo Global Management (NYSE: APO) is one of 55 publicly-traded companies in the “Investment Management & Fund Operators” industry, but how does it compare to its competitors? We will compare Apollo Global Management to related businesses based on the strength of its earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Insider and Institutional Ownership

73.6% of Apollo Global Management shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 4.1% of Apollo Global Management shares are owned by insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Apollo Global Management pays an annual dividend of $2.08 per share and has a dividend yield of 6.9%. Apollo Global Management pays out 81.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.7% and pay out 49.6% of their earnings in the form of a dividend.

Volatility and Risk

Apollo Global Management has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Apollo Global Management’s competitors have a beta of 1.23, meaning that their average stock price is 23% more volatile than the S&P 500.

Profitability

This table compares Apollo Global Management and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apollo Global Management 21.79% 59.61% 19.32%
Apollo Global Management Competitors -44.72% 7.59% 5.17%

Analyst Recommendations

This is a summary of recent ratings for Apollo Global Management and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Global Management 0 3 8 0 2.73
Apollo Global Management Competitors 358 1791 1809 62 2.39

Apollo Global Management currently has a consensus target price of $29.60, indicating a potential downside of 1.66%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 5.34%. Given Apollo Global Management’s competitors higher possible upside, analysts plainly believe Apollo Global Management has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Apollo Global Management and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Apollo Global Management $2.21 billion N/A 11.76
Apollo Global Management Competitors $2.88 billion $924.36 million 7.07

Apollo Global Management’s competitors have higher revenue and earnings than Apollo Global Management. Apollo Global Management is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Apollo Global Management beats its competitors on 8 of the 14 factors compared.

About Apollo Global Management

Apollo Global Management, LLC (Apollo) is an alternative investment manager in private equity, credit and real estate. The Company raises, invests and manages funds on behalf of pension, endowment and sovereign wealth funds, as well as other institutional and individual investors. The Company’s segments include private equity, credit and real estate. The private equity segment invests in control equity and related debt instruments, convertible securities and distressed debt investments. The credit segment invests in non-control corporate and structured debt instruments, including performing, stressed and distressed investments across the capital structure. The real estate segment invests in real estate equity for the acquisition and recapitalization of real estate assets, portfolios, platforms and operating companies, and real estate debt, including first mortgage and mezzanine loans, preferred equity and commercial mortgage backed securities.

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