Critical Survey: Apollo Global Management (APO) & Its Rivals

Apollo Global Management (NYSE:APO) is one of 1,744 public companies in the “Capital Markets” industry, but how does it contrast to its rivals? We will compare Apollo Global Management to similar businesses based on the strength of its institutional ownership, analyst recommendations, earnings, profitability, dividends, risk and valuation.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Apollo Global Management and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apollo Global Management	0	6	14	0	2.70
Apollo Global Management Competitors	5540	20102	22433	641	2.37

Apollo Global Management presently has a consensus price target of $151.40, indicating a potential upside of 26.49%. As a group, “Capital Markets” companies have a potential upside of 25.70%. Given Apollo Global Management’s stronger consensus rating and higher probable upside, analysts clearly believe Apollo Global Management is more favorable than its rivals.

Valuation & Earnings

This table compares Apollo Global Management and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Apollo Global Management	$32.05 billion	$3.49 billion	43.84
Apollo Global Management Competitors	$5.22 billion	$396.39 million	17.13

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

Profitability

This table compares Apollo Global Management and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apollo Global Management	5.22%	14.01%	1.18%
Apollo Global Management Competitors	311.61%	79.26%	3.71%

Dividends

Apollo Global Management pays an annual dividend of $2.25 per share and has a dividend yield of 1.9%. Apollo Global Management pays out 82.4% 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, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 30.0% of their earnings in the form of a dividend. Apollo Global Management has increased its dividend for 3 consecutive years. Apollo Global Management lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

77.1% of Apollo Global Management shares are owned by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are owned by institutional investors. 8.3% of Apollo Global Management shares are owned by company insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Apollo Global Management has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Apollo Global Management’s rivals have a beta of 0.80, indicating that their average stock price is 20% less volatile than the S&P 500.

Summary

Apollo Global Management beats its rivals on 8 of the 15 factors compared.

Apollo Global Management Company Profile

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.