Apollo Global Management (NYSE:APO) vs. Eagle Point Credit (NYSE:ECC) Head-To-Head Analysis

Apollo Global Management (NYSE:APO) and Eagle Point Credit (NYSE:ECC) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Volatility & Risk

Apollo Global Management has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Eagle Point Credit has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Insider and Institutional Ownership

77.1% of Apollo Global Management shares are held by institutional investors. Comparatively, 19.5% of Eagle Point Credit shares are held by institutional investors. 8.2% of Apollo Global Management shares are held by company insiders. Comparatively, 0.2% of Eagle Point Credit shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Apollo Global Management and Eagle Point Credit”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apollo Global Management	$32.05 billion	1.93	$3.49 billion	$5.52	19.39
Eagle Point Credit	$179.77 million	2.86	$85.49 million	$0.19	21.44

Apollo Global Management has higher revenue and earnings than Eagle Point Credit. Apollo Global Management is trading at a lower price-to-earnings ratio than Eagle Point Credit, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Apollo Global Management and Eagle Point Credit, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apollo Global Management	0	3	13	2	2.94
Eagle Point Credit	1	2	3	0	2.33

Apollo Global Management currently has a consensus target price of $151.86, suggesting a potential upside of 41.91%. Eagle Point Credit has a consensus target price of $6.67, suggesting a potential upside of 63.68%. Given Eagle Point Credit’s higher probable upside, analysts clearly believe Eagle Point Credit is more favorable than Apollo Global Management.

Profitability

This table compares Apollo Global Management and Eagle Point Credit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apollo Global Management	10.90%	15.25%	1.26%
Eagle Point Credit	12.33%	13.47%	8.14%

Dividends

Apollo Global Management pays an annual dividend of $2.04 per share and has a dividend yield of 1.9%. Eagle Point Credit pays an annual dividend of $1.68 per share and has a dividend yield of 41.2%. Apollo Global Management pays out 37.0% of its earnings in the form of a dividend. Eagle Point Credit pays out 884.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apollo Global Management has raised its dividend for 3 consecutive years.

Summary

Apollo Global Management beats Eagle Point Credit on 12 of the 18 factors compared between the two stocks.

About Apollo Global Management

Apollo Global Management, Inc. is a private equity firm specializing in investments in credit, private equity, infrastructure, secondaries and real estate markets. The firm prefers to invest in private and public markets. The firm’s private equity investments include traditional buyouts, recapitalization, distressed buyouts and debt investments in real estate, corporate partner buyouts, distressed asset, corporate carve-outs, middle market, growth, venture capital, turnaround, bridge, corporate restructuring, special situation, acquisition, and industry consolidation transactions. For credit strategies, the firm focuses to invest in multi-sector credit, semi-liquid credit, direct lending, first lien, unitranche, whole loans and private credit. The firm provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors. It manages client focused portfolios. The firm launches and manages hedge funds for its clients. It also manages real estate funds and private equity funds for its clients. The firm invests in the fixed income and alternative investment markets across the globe. Its fixed income investments include income-oriented senior loans, bonds, collateralized loan obligations, structured credit, opportunistic credit, non-performing loans, distressed debt, mezzanine debt, and value oriented fixed income securities. The firm seeks to invest in chemicals, commodities, consumer and retail, oil and gas, metals, mining, agriculture, commodities, distribution and transportation, financial and business services, manufacturing and industrial, media distribution, cable, entertainment and leisure, telecom, technology, natural resources, energy, packaging and materials, and satellite and wireless industries. It also focuses on clean energy, sustainable industry, climate solutions, energy transition, industrial decarbonization, sustainable mobility, sustainable resource use, and sustainable real estate. It seeks to invest in companies based in across Africa, Asia, North America with a focus on United States, Western Europe and Europe. It employs a combination of contrarian, value, and distressed strategies to make its investments. The firm seeks to make investments in the range of $75 million and $1500 million. The firm seeks to invest in companies with Enterprise value between $750 million to $2500 million. The firm conducts in-house research to create its investment portfolio. It seeks to acquire minority and majority positions in its portfolio companies. Apollo Global Management, Inc. was founded in 1990 and is headquartered in New York, New York with additional offices in North America, Asia, Africa and Europe.

About Eagle Point Credit

Eagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S. senior secured loans. Eagle Point Credit Company Inc. was formed on March 24, 2014 and is domiciled in the United States.