Gamco Investors (GBL) & Apollo Global Management (APO) Critical Survey
Apollo Global Management (NYSE: APO) and Gamco Investors (NYSE:GBL) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Apollo Global Management pays an annual dividend of $2.08 per share and has a dividend yield of 6.5%. Gamco Investors pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. 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. Gamco Investors pays out 2.2% of its earnings in the form of a dividend. Apollo Global Management has increased its dividend for 5 consecutive years. Apollo Global Management is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Apollo Global Management and Gamco Investors’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Apollo Global Management||$2.21 billion||2.81||$496.41 million||$2.56||12.51|
|Gamco Investors||$361.19 million||2.41||$181.57 million||$3.68||8.20|
Apollo Global Management has higher revenue and earnings than Gamco Investors. Gamco Investors is trading at a lower price-to-earnings ratio than Apollo Global Management, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Apollo Global Management and Gamco Investors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Apollo Global Management||0||3||8||0||2.73|
Apollo Global Management currently has a consensus price target of $30.00, suggesting a potential downside of 6.34%. Given Apollo Global Management’s higher probable upside, analysts clearly believe Apollo Global Management is more favorable than Gamco Investors.
Insider and Institutional Ownership
73.6% of Apollo Global Management shares are owned by institutional investors. Comparatively, 25.4% of Gamco Investors shares are owned by institutional investors. 4.1% of Apollo Global Management shares are owned by insiders. Comparatively, 79.0% of Gamco Investors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Apollo Global Management has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Gamco Investors has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.
This table compares Apollo Global Management and Gamco Investors’ 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 beats Gamco Investors on 11 of the 16 factors compared between the two stocks.
Apollo Global Management Company Profile
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.
Gamco Investors Company Profile
GAMCO Investors, Inc. is a holding company. The Company is a provider of investment advisory services to open and closed-end funds, institutional and private wealth management investors principally in the United States. The Company operates through the investment advisory and asset management business segment. It manages assets on a discretionary basis and invests in securities through various investment styles. Its assets under management are organized into three groups: Institutional and Private Wealth Management; Open and Closed-End Funds, and the GAMCO International SICAV (SICAV). The Company provides advisory services to a range of investors, including corporate retirement plans, foundations, endowments and private wealth clients, and also serves as sub-advisor to third-party investment funds, including registered investment companies. As of December 31, 2016, it had provided advisory services to 21 open-end funds, 15 closed-end funds and one exchange traded managed fund.
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