Apollo Global Management (NYSE: APO) is one of 55 publicly-traded companies in the “Investment Management & Fund Operators” industry, but how does it contrast to its peers? We will compare Apollo Global Management to similar businesses based on the strength of its earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Apollo Global Management and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Apollo Global Management $2.21 billion N/A 11.94
Apollo Global Management Competitors $2.88 billion $924.32 million 7.27

Apollo Global Management’s peers have higher revenue and earnings than Apollo Global Management. Apollo Global Management is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Apollo Global Management has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Apollo Global Management’s peers have a beta of 1.23, suggesting that their average share price is 23% more volatile than the S&P 500.

Profitability

This table compares Apollo Global Management and its peers’ 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 Competitors -45.48% 7.48% 4.98%

Analyst Recommendations

This is a summary of current ratings and price targets for Apollo Global Management and its peers, as provided 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 Competitors 275 1624 1748 57 2.43

Apollo Global Management currently has a consensus price target of $29.80, suggesting a potential downside of 2.49%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 7.39%. Given Apollo Global Management’s peers higher possible upside, analysts plainly believe Apollo Global Management has less favorable growth aspects than its peers.

Insider & Institutional Ownership

73.6% of Apollo Global Management shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 4.1% of Apollo Global Management shares are owned by company insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Apollo Global Management pays an annual dividend of $2.08 per share and has a dividend yield of 6.8%. 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. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.6% and pay out 49.6% of their earnings in the form of a dividend.

Summary

Apollo Global Management beats its peers on 8 of the 14 factors compared.

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.

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