KKR & Co Inc Class A (NYSE: APO) and Apollo Global Management LLC Class A (NYSE:APO) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Valuation & Earnings

This table compares KKR & Co Inc Class A and Apollo Global Management LLC Class A’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KKR & Co Inc Class A $3.28 billion 4.02 $1.02 billion $2.38 10.55
Apollo Global Management LLC Class A $2.61 billion 2.58 $629.10 million $3.57 9.38

KKR & Co Inc Class A has higher revenue and earnings than Apollo Global Management LLC Class A. Apollo Global Management LLC Class A is trading at a lower price-to-earnings ratio than KKR & Co Inc Class A, indicating that it is currently the more affordable of the two stocks.

Dividends

KKR & Co Inc Class A pays an annual dividend of $0.68 per share and has a dividend yield of 2.7%. Apollo Global Management LLC Class A pays an annual dividend of $1.72 per share and has a dividend yield of 5.1%. KKR & Co Inc Class A pays out 28.6% of its earnings in the form of a dividend. Apollo Global Management LLC Class A pays out 48.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares KKR & Co Inc Class A and Apollo Global Management LLC Class A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KKR & Co Inc Class A 39.10% 7.34% 3.22%
Apollo Global Management LLC Class A 19.59% 48.19% 16.83%

Insider & Institutional Ownership

62.4% of KKR & Co Inc Class A shares are owned by institutional investors. Comparatively, 73.7% of Apollo Global Management LLC Class A shares are owned by institutional investors. 4.1% of Apollo Global Management LLC Class A shares 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for KKR & Co Inc Class A and Apollo Global Management LLC Class A, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KKR & Co Inc Class A 0 3 9 0 2.75
Apollo Global Management LLC Class A 0 2 7 0 2.78

KKR & Co Inc Class A currently has a consensus price target of $30.55, indicating a potential upside of 21.60%. Apollo Global Management LLC Class A has a consensus price target of $39.00, indicating a potential upside of 16.52%. Given KKR & Co Inc Class A’s higher possible upside, research analysts plainly believe KKR & Co Inc Class A is more favorable than Apollo Global Management LLC Class A.

Risk and Volatility

KKR & Co Inc Class A has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500. Comparatively, Apollo Global Management LLC Class A has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Summary

KKR & Co Inc Class A beats Apollo Global Management LLC Class A on 9 of the 16 factors compared between the two stocks.

KKR & Co Inc Class A Company Profile

KKR & Co. L.P. is a private equity and real estate investment firm specializing in direct and fund of fund investments. It specializes in acquisitions, leveraged buyouts, management buyouts, credit special situations, growth equity, mature, mezzanine, distressed, turnaround, and middle market investments. The firm considers investments in all industries with a focus on software, security, semiconductors, consumer electronics, internet of things (iot), internet, information services, information technology infrastructure, financial technology, network and cyber security architecture, engineering and operations, content, technology and hardware, energy and infrastructure, real estate, services industry with a focus on business services, intelligence, industry-leading franchises and companies in natural resource, containers and packaging, agriculture, airports, ports, forestry, electric utilities, textiles, apparel and luxury goods, household durables, digital media, insurance, brokerage houses, non-durable goods distribution, supermarket retailing, grocery stores, food, beverage, and tobacco, hospitals, entertainment venues and production companies, publishing, printing services, capital goods, financial services, specialized finance, pipelines, and renewable energy. In energy and infrastructure, it focuses on the upstream oil and gas and equipment, minerals and royalties and services verticals. In real estate, the firm seeks to invest in private and public real estate securities including property-level equity, debt and special situations transactions and businesses with significant real estate holdings, and oil and natural gas properties. The firm also invests in asset services sector that encompasses a broad array of B2B, B2C and B2G services verticals including asset-based, transport, logistics, leisure/hospitality, resource and utility support, infra-like, mission-critical, and environmental services. Within Americas, the firm prefers to invest in consumer products; chemicals, metals and mining; energy and natural resources; financial services; healthcare; industrials; media and communications; retail; and technology. Within Europe, the firm invests in consumer and retail; energy; financial services; health care; industrials and chemicals; media and digital; and telecom and technologies. Within Asia, it invests in consumer products; energy and resources; financial services; healthcare; industrials; logistics; media and telecom; retail; real estate; and technology. The firm seeks to invest in mid to high-end residential developments, but can invest in other projects throughout Mainland China through outright ownership, joint ventures, and merger. It invests globally with a focus on Australia, emerging and developed Asia, Middle East and Africa, Nordic, Southeast Asia, Asia Pacific, Ireland, Hong Kong, Japan, Taiwan, India, Vietnam, Malaysia, Singapore, Indonesia, France, Germany, Netherlands, United Kingdom, Caribbean, Mexico, South America, North America, Brazil, Latin America, Korea with a focus on South Korea, and United States of America. In the United States and Europe, the firm focuses on buyouts of large, publicly traded companies. It seeks to invest $30 million to $717 million in companies with enterprise values between $500 million to $2389 million. The firm prefers to invest in a range of debt and public equity investing and may co-invest. It seeks a board seat in its portfolio companies and a controlling ownership of a company or a strategic minority positions. The firm may acquire majority and minority equity interests, particularly when making private equity investments in Asia or sponsoring investments as part of a large investor consortium. The firm typically holds its investment for a period of five to seven years and more and exits through initial public offerings, secondary offerings, and sales to strategic buyers. KKR & Co. L.P. was founded in 1976 and is based in New York, New York with additional offices across North America, Europe, Australia, and Asia.

Apollo Global Management LLC Class A Company Profile

Apollo Global Management, LLC is a publicly owned investment manager. The firm primarily 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 alternative investments include investment in private equity and real estate 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, turnaround, bridge, corporate restructuring, special situation, acquisition, and industry consolidation transactions. 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 seeks to invest in companies based in across North America with a focus on United States, and Europe. The firm also makes investments outside North America, primarily in Western Europe and Asia. It employs a combination of contrarian, value, and distressed strategies to make its investments. The firm seeks to make investments in the range of $10 million and $1.5 billion. The firm conducts an in-house research to create its investment portfolio. It seeks to acquire minority and majority positions in its portfolio companies. Apollo Global Management, LLC was founded in 1990 and is headquartered in New York City, with additional offices in New York City; Bethesda, Maryland; Chicago, Illinois; Los Angeles, California; Purchase, New York; Houston, Texas; London, United Kingdom; Frankfurt, Germany; Central, Hong Kong; Singapore; and Luxembourg.

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