Apollo Commercial Real Est. Finance (NYSE:ARI) and Uniti Group (NASDAQ:UNIT) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Apollo Commercial Real Est. Finance and Uniti Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Commercial Real Est. Finance 0 3 1 0 2.25
Uniti Group 4 4 0 0 1.50

Apollo Commercial Real Est. Finance presently has a consensus target price of $18.50, indicating a potential downside of 1.54%. Uniti Group has a consensus target price of $15.00, indicating a potential upside of 39.28%. Given Uniti Group’s higher possible upside, analysts clearly believe Uniti Group is more favorable than Apollo Commercial Real Est. Finance.

Dividends

Apollo Commercial Real Est. Finance pays an annual dividend of $1.84 per share and has a dividend yield of 9.8%. Uniti Group pays an annual dividend of $0.20 per share and has a dividend yield of 1.9%. Apollo Commercial Real Est. Finance pays out 110.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Uniti Group pays out 8.0% of its earnings in the form of a dividend.

Insider & Institutional Ownership

59.4% of Apollo Commercial Real Est. Finance shares are held by institutional investors. Comparatively, 79.5% of Uniti Group shares are held by institutional investors. 0.7% of Apollo Commercial Real Est. Finance shares are held by insiders. Comparatively, 0.4% of Uniti Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Apollo Commercial Real Est. Finance has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Uniti Group has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares Apollo Commercial Real Est. Finance and Uniti Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apollo Commercial Real Est. Finance 77.15% 10.47% 5.09%
Uniti Group 1.16% -0.82% 0.26%

Valuation & Earnings

This table compares Apollo Commercial Real Est. Finance and Uniti Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apollo Commercial Real Est. Finance $289.29 million 9.97 $219.98 million $1.67 11.25
Uniti Group $1.02 billion 1.95 $16.19 million $2.51 4.29

Apollo Commercial Real Est. Finance has higher earnings, but lower revenue than Uniti Group. Uniti Group is trading at a lower price-to-earnings ratio than Apollo Commercial Real Est. Finance, indicating that it is currently the more affordable of the two stocks.

Summary

Apollo Commercial Real Est. Finance beats Uniti Group on 10 of the 16 factors compared between the two stocks.

Apollo Commercial Real Est. Finance Company Profile

Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) that primarily originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States. The company is qualified as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if it distributes at least 90% of its REIT taxable income to its stockholders. Apollo Commercial Real Estate Finance, Inc. was founded in 2009 and is based in New York, New York.

Uniti Group Company Profile

Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry. As of December 31, 2018, Uniti owns 5.5 million fiber strand miles, approximately 928 wireless towers, and other communications real estate throughout the United States and Latin America.

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