Artisan Partners Asset Management (NYSE: APO) and Apollo Global Management LLC Class A (NYSE:APO) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Profitability

This table compares Artisan Partners Asset Management 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
Artisan Partners Asset Management 10.30% 181.69% 22.23%
Apollo Global Management LLC Class A 19.59% 48.19% 16.83%

Valuation & Earnings

This table compares Artisan Partners Asset Management and Apollo Global Management LLC Class A’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Artisan Partners Asset Management $795.60 million 3.25 $49.59 million $2.41 13.92
Apollo Global Management LLC Class A $2.61 billion 2.68 $629.10 million $3.57 9.73

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Artisan Partners Asset Management and Apollo Global Management LLC Class A, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Artisan Partners Asset Management 1 2 1 0 2.00
Apollo Global Management LLC Class A 0 2 7 0 2.78

Artisan Partners Asset Management currently has a consensus target price of $36.50, indicating a potential upside of 8.79%. Apollo Global Management LLC Class A has a consensus target price of $39.00, indicating a potential upside of 12.23%. Given Apollo Global Management LLC Class A’s stronger consensus rating and higher possible upside, analysts plainly believe Apollo Global Management LLC Class A is more favorable than Artisan Partners Asset Management.

Volatility and Risk

Artisan Partners Asset Management has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, Apollo Global Management LLC Class A has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Dividends

Artisan Partners Asset Management pays an annual dividend of $2.40 per share and has a dividend yield of 7.2%. Apollo Global Management LLC Class A pays an annual dividend of $1.72 per share and has a dividend yield of 4.9%. Artisan Partners Asset Management pays out 99.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apollo Global Management LLC Class A pays out 48.2% of its earnings in the form of a dividend.

Institutional & Insider Ownership

62.5% of Artisan Partners Asset Management shares are owned by institutional investors. Comparatively, 73.7% of Apollo Global Management LLC Class A shares are owned by institutional investors. 28.2% of Artisan Partners Asset Management shares are owned by insiders. Comparatively, 4.1% of Apollo Global Management LLC Class A shares are owned by 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.

Summary

Apollo Global Management LLC Class A beats Artisan Partners Asset Management on 9 of the 16 factors compared between the two stocks.

Artisan Partners Asset Management Company Profile

Artisan Partners Asset Management Inc. is publicly owned investment manager. It provides its services to pension and profit sharing plans, trusts, endowments, foundations, charitable organizations, government entities, private funds and non-U.S. funds, as well as mutual funds, non-U.S. funds and collective trusts. It manages separate client-focused equity and fixed income portfolios. The firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of companies across all market capitalization. For fixed income component of its portfolio the firm invests in non-investment grade corporate bonds and secured and unsecured loans. It employs fundamental analysis to create its portfolios. Artisan Partners Asset Management Inc. was founded in 1994 and is based in Milwaukee, Wisconsin with additional offices in Atlanta, Georgia; New York City; San Francisco, California; Leawood, Kansas; and London, United Kingdom.

Apollo Global Management LLC Class A Company Profile

Apollo Global Management LLC is a global alternative investment manager, which provides private equity, credit-oriented capital markets, and real estate. The company raises, invests and manages funds on pension and endowment funds as well as other institutional and individual investors. It operates through three business segments: Private Equity, Credit, and Real Estate. The Private Equity segment invests in control equity and related debt instruments, convertible securities, and distressed debt instruments. The Credit segment primarily invests in non-control corporate and structured debt instruments including performing, stressed, and distressed instruments across the capital structure. The Real estate segment invests in legacy commercial mortgage-backed securities, commercial first mortgage loans, mezzanine investments, and other commercial real estate-related debt investments. The company was founded by Marc Jeffrey Rowan and Joshua J. Harris in 1990 and is headquartered in New York, NY.

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