Northern Trust (NTRS) and Apollo Global Management (APO) Financial Analysis
Apollo Global Management (NYSE: APO) and Northern Trust (NASDAQ:NTRS) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.
Earnings & Valuation
This table compares Apollo Global Management and Northern Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Apollo Global Management||$1.97 billion||3.55||$402.85 million||$3.06||11.83|
|Northern Trust||$5.14 billion||4.74||$1.03 billion||$4.52||23.73|
Northern Trust has higher revenue and earnings than Apollo Global Management. Apollo Global Management is trading at a lower price-to-earnings ratio than Northern Trust, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Apollo Global Management and Northern Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Apollo Global Management||0||2||9||0||2.82|
Apollo Global Management presently has a consensus price target of $34.45, suggesting a potential downside of 4.80%. Northern Trust has a consensus price target of $98.77, suggesting a potential downside of 7.92%. Given Apollo Global Management’s stronger consensus rating and higher possible upside, analysts clearly believe Apollo Global Management is more favorable than Northern Trust.
Apollo Global Management pays an annual dividend of $1.56 per share and has a dividend yield of 4.3%. Northern Trust pays an annual dividend of $1.68 per share and has a dividend yield of 1.6%. Apollo Global Management pays out 51.0% of its earnings in the form of a dividend. Northern Trust pays out 37.2% 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.
Risk & Volatility
Apollo Global Management has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Northern Trust has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.
This table compares Apollo Global Management and Northern Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Apollo Global Management||24.82%||64.11%||21.48%|
Insider and Institutional Ownership
72.4% of Apollo Global Management shares are held by institutional investors. Comparatively, 81.7% of Northern Trust shares are held by institutional investors. 4.1% of Apollo Global Management shares are held by insiders. Comparatively, 1.3% of Northern Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Apollo Global Management beats Northern Trust on 9 of the 16 factors compared between the two stocks.
About Apollo Global Management
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.
About Northern Trust
Northern Trust Corporation is a financial holding company. The Company provides asset servicing, fund administration, asset management, fiduciary and banking solutions for corporations, institutions, families and individuals across the world. Its segments include Corporate & Institutional Services (C&IS), Wealth Management, and Treasury and Other. The C&IS segment is a provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds and other institutional investors around the globe. The Wealth Management segment provides trust, investment management, custody and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services, and private and business banking. It conducts its business through various subsidiaries.
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