Critical Contrast: Apollo Investment Corporation (AINV) versus Its Competitors
Apollo Investment Corporation (NASDAQ: AINV) is one of 589 public companies in the “Closed End Funds” industry, but how does it weigh in compared to its competitors? We will compare Apollo Investment Corporation to similar businesses based on the strength of its analyst recommendations, valuation, dividends, profitability, institutional ownership, earnings and risk.
Insider & Institutional Ownership
45.8% of Apollo Investment Corporation shares are held by institutional investors. Comparatively, 23.8% of shares of all “Closed End Funds” companies are held by institutional investors. 0.3% of Apollo Investment Corporation shares are held by company insiders. Comparatively, 4.1% of shares of all “Closed End Funds” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Apollo Investment Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 9.9%. Apollo Investment Corporation pays out 166.7% 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, “Closed End Funds” companies pay a dividend yield of 8.5% and pay out 97.3% of their earnings in the form of a dividend.
Earnings & Valuation
This table compares Apollo Investment Corporation and its competitors revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Apollo Investment Corporation||$279.86 million||$18.37 million||16.83|
|Apollo Investment Corporation Competitors||$238.79 million||$43.51 million||144.05|
Apollo Investment Corporation has higher revenue, but lower earnings than its competitors. Apollo Investment Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Volatility & Risk
Apollo Investment Corporation has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Apollo Investment Corporation’s competitors have a beta of 0.56, suggesting that their average stock price is 44% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Apollo Investment Corporation and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Apollo Investment Corporation||1||4||4||0||2.33|
|Apollo Investment Corporation Competitors||233||1567||1924||31||2.47|
Apollo Investment Corporation currently has a consensus target price of $6.41, indicating a potential upside of 5.71%. As a group, “Closed End Funds” companies have a potential upside of 88.02%. Given Apollo Investment Corporation’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Apollo Investment Corporation has less favorable growth aspects than its competitors.
This table compares Apollo Investment Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Apollo Investment Corporation||29.87%||9.51%||5.65%|
|Apollo Investment Corporation Competitors||-35.01%||6.74%||5.24%|
Apollo Investment Corporation competitors beat Apollo Investment Corporation on 8 of the 15 factors compared.
Apollo Investment Corporation Company Profile
Apollo Investment Corporation is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation. It invests primarily in various forms of debt investments, including secured and unsecured debt, loan investments and/or equity in private middle-market companies. It may also invest in the securities of public companies and in structured products and other investments, such as collateralized loan obligations (CLOs) and credit-linked notes (CLNs). Its portfolio also includes equity interests, such as common stock, preferred stock, warrants or options. It invests in investments in the United States secured and unsecured loans, other debt securities and equity, and may also invests a portion of the portfolio in other investment opportunities, including foreign securities and structured products. Apollo Investment Management, L.P. is the investment advisor of the Company.
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