Apollo Investment Corporation (NASDAQ: AINV) is one of 558 public companies in the “Closed End Funds” industry, but how does it contrast to its rivals? We will compare Apollo Investment Corporation to similar companies based on the strength of its risk, earnings, profitability, analyst recommendations, valuation, institutional ownership and dividends.

Dividends

Apollo Investment Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 9.9%. Apollo Investment Corporation pays out 166.7% 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, “Closed End Funds” companies pay a dividend yield of 8.7% and pay out 97.5% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Apollo Investment Corporation and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Apollo Investment Corporation $279.86 million $18.37 million 16.89
Apollo Investment Corporation Competitors $238.79 million $43.51 million 272.68

Apollo Investment Corporation has higher revenue, but lower earnings than its rivals. Apollo Investment Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Apollo Investment Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apollo Investment Corporation 29.87% 9.51% 5.65%
Apollo Investment Corporation Competitors -35.24% 6.99% 5.45%

Institutional and Insider Ownership

46.1% of Apollo Investment Corporation shares are owned by institutional investors. Comparatively, 23.8% of shares of all “Closed End Funds” companies are owned by institutional investors. 0.3% of Apollo Investment Corporation shares are owned by insiders. Comparatively, 5.1% of shares of all “Closed End Funds” companies are owned by 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.

Volatility & Risk

Apollo Investment Corporation has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Apollo Investment Corporation’s rivals have a beta of 0.56, meaning that their average share price is 44% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Apollo Investment Corporation and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Investment Corporation 1 4 4 0 2.33
Apollo Investment Corporation Competitors 233 1561 1913 31 2.47

Apollo Investment Corporation currently has a consensus price target of $6.41, indicating a potential upside of 5.37%. As a group, “Closed End Funds” companies have a potential upside of 48.20%. Given Apollo Investment Corporation’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Apollo Investment Corporation has less favorable growth aspects than its rivals.

Summary

Apollo Investment Corporation rivals beat Apollo Investment Corporation on 8 of the 15 factors compared.

About Apollo Investment Corporation

Apollo Investment Corporation is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation. It invests primarily in various forms of debt investments, including secured and unsecured debt, loan investments and/or equity in private middle-market companies. It may also invest in the securities of public companies and in structured products and other investments, such as collateralized loan obligations (CLOs) and credit-linked notes (CLNs). Its portfolio also includes equity interests, such as common stock, preferred stock, warrants or options. It invests in investments in the United States secured and unsecured loans, other debt securities and equity, and may also invests a portion of the portfolio in other investment opportunities, including foreign securities and structured products. Apollo Investment Management, L.P. is the investment advisor of the Company.

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