Critical Survey: Apollo Global Management (NYSE:APO) versus OFS Credit (NASDAQ:OCCI)

Apollo Global Management (NYSE:APO) and OFS Credit (NASDAQ:OCCI) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Apollo Global Management and OFS Credit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apollo Global Management	0	4	11	1	2.81
OFS Credit	0	0	0	0	0.00

Apollo Global Management presently has a consensus target price of $162.57, indicating a potential upside of 30.60%. Given Apollo Global Management’s stronger consensus rating and higher probable upside, analysts plainly believe Apollo Global Management is more favorable than OFS Credit.

Institutional & Insider Ownership

77.1% of Apollo Global Management shares are held by institutional investors. Comparatively, 23.8% of OFS Credit shares are held by institutional investors. 8.2% of Apollo Global Management shares are held by company insiders. Comparatively, 1.0% of OFS Credit shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Apollo Global Management and OFS Credit”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apollo Global Management	$25.42 billion	2.80	$4.58 billion	$5.35	23.27
OFS Credit	$32.55 million	2.33	$3.78 million	$0.24	20.08

Apollo Global Management has higher revenue and earnings than OFS Credit. OFS Credit is trading at a lower price-to-earnings ratio than Apollo Global Management, indicating that it is currently the more affordable of the two stocks.

Dividends

Apollo Global Management pays an annual dividend of $2.04 per share and has a dividend yield of 1.6%. OFS Credit pays an annual dividend of $1.38 per share and has a dividend yield of 28.6%. Apollo Global Management pays out 38.1% of its earnings in the form of a dividend. OFS Credit pays out 575.0% 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 has raised its dividend for 3 consecutive years.

Volatility and Risk

Apollo Global Management has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500. Comparatively, OFS Credit has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares Apollo Global Management and OFS Credit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apollo Global Management	13.25%	13.38%	1.05%
OFS Credit	N/A	N/A	N/A

Summary

Apollo Global Management beats OFS Credit on 17 of the 18 factors compared between the two stocks.

About Apollo Global Management

Apollo Global Management, Inc. is a private equity firm specializing in investments in credit, private equity, infrastructure, secondaries and real estate markets. The firm prefers to invest in private and public 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, middle market, growth, venture capital, turnaround, bridge, corporate restructuring, special situation, acquisition, and industry consolidation transactions. For credit strategies, the firm focuses to invest in multi-sector credit, semi-liquid credit, direct lending, first lien, unitranche, whole loans and private credit. The firm 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 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 also focuses on clean energy, sustainable industry, climate solutions, energy transition, industrial decarbonization, sustainable mobility, sustainable resource use, and sustainable real estate. It seeks to invest in companies based in across Africa, Asia, North America with a focus on United States, Western Europe and Europe. It employs a combination of contrarian, value, and distressed strategies to make its investments. The firm seeks to make investments in the range of $75 million and $1500 million. The firm seeks to invest in companies with Enterprise value between $750 million to $2500 million. The firm conducts in-house research to create its investment portfolio. It seeks to acquire minority and majority positions in its portfolio companies. Apollo Global Management, Inc. was founded in 1990 and is headquartered in New York, New York with additional offices in North America, Asia, Africa and Europe.

About OFS Credit

OFS Credit Company, Inc. is a fund of OFS Advisor.