Apollo Global Management (NYSE: APO) and Brookfield Asset Management (NYSE:BAM) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Profitability

This table compares Apollo Global Management and Brookfield Asset Management’s 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%
Brookfield Asset Management 4.87% 2.10% 0.84%

Volatility & Risk

Apollo Global Management has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Brookfield Asset Management has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Valuation and Earnings

This table compares Apollo Global Management and Brookfield Asset Management’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Apollo Global Management $2.21 billion 2.50 $496.41 million $2.56 11.11
Brookfield Asset Management $30.02 billion 1.25 $8.47 billion $1.28 30.50

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

Analyst Ratings

This is a summary of recent recommendations for Apollo Global Management and Brookfield Asset Management, 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
Brookfield Asset Management 0 1 7 0 2.88

Apollo Global Management presently has a consensus target price of $29.30, suggesting a potential upside of 2.99%. Brookfield Asset Management has a consensus target price of $43.56, suggesting a potential upside of 11.58%. Given Brookfield Asset Management’s stronger consensus rating and higher probable upside, analysts plainly believe Brookfield Asset Management is more favorable than Apollo Global Management.

Institutional & Insider Ownership

73.6% of Apollo Global Management shares are owned by institutional investors. Comparatively, 53.8% of Brookfield Asset Management shares are owned by institutional investors. 4.1% of Apollo Global Management shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Apollo Global Management pays an annual dividend of $2.08 per share and has a dividend yield of 7.3%. Brookfield Asset Management pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. 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. Brookfield Asset Management pays out 43.8% of its earnings in the form of a dividend. Brookfield Asset Management has increased its dividend for 5 consecutive years.

Summary

Apollo Global Management beats Brookfield Asset Management on 10 of the 17 factors compared between the two stocks.

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.

Brookfield Asset Management Company Profile

Brookfield Asset Management Inc. is an alternative asset manager. The Company operates in eight segments. The Asset Management segment manages its listed partnerships, private funds and public markets on behalf of its clients. The Property segment includes the ownership, operation and development of office, retail and other properties. The Renewable power segment operates and develops hydroelectric, wind power and other generating facilities. The Infrastructure segment includes the ownership, operation and development of utilities and agricultural operations, among others. The Residential development segment includes homebuilding, condominium development and land development. The Service activities segment includes construction management and contracting services and property services. The Private equity segment includes the investments and operations overseen by its private equity group. The Corporate activities segment includes the allocation of capital to its operating platforms.

Receive News & Ratings for Apollo Global Management LLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Apollo Global Management LLC and related companies with MarketBeat.com's FREE daily email newsletter.