Head-To-Head Comparison: Apollo Global Management (APO) vs. Waddell & Reed Financial (WDR)
Apollo Global Management (NYSE: APO) and Waddell & Reed Financial (NYSE:WDR) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Insider & Institutional Ownership
73.6% of Apollo Global Management shares are owned by institutional investors. Comparatively, 96.4% of Waddell & Reed Financial shares are owned by institutional investors. 4.1% of Apollo Global Management shares are owned by company insiders. Comparatively, 3.8% of Waddell & Reed Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Apollo Global Management has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Waddell & Reed Financial has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Apollo Global Management and Waddell & Reed Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Apollo Global Management||0||3||8||0||2.73|
|Waddell & Reed Financial||5||2||0||0||1.29|
Apollo Global Management presently has a consensus price target of $29.60, indicating a potential downside of 2.57%. Waddell & Reed Financial has a consensus price target of $17.50, indicating a potential downside of 14.09%. Given Apollo Global Management’s stronger consensus rating and higher probable upside, equities analysts clearly believe Apollo Global Management is more favorable than Waddell & Reed Financial.
Earnings and Valuation
This table compares Apollo Global Management and Waddell & Reed Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Apollo Global Management||$2.21 billion||2.67||$496.41 million||$2.56||11.87|
|Waddell & Reed Financial||$1.17 billion||1.46||$241.86 million||$1.59||12.81|
Apollo Global Management has higher revenue and earnings than Waddell & Reed Financial. Apollo Global Management is trading at a lower price-to-earnings ratio than Waddell & Reed Financial, indicating that it is currently the more affordable of the two stocks.
Apollo Global Management pays an annual dividend of $2.08 per share and has a dividend yield of 6.8%. Waddell & Reed Financial pays an annual dividend of $1.84 per share and has a dividend yield of 9.0%. 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. Waddell & Reed Financial pays out 115.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apollo Global Management has increased its dividend for 6 consecutive years.
This table compares Apollo Global Management and Waddell & Reed Financial’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%|
|Waddell & Reed Financial||11.34%||18.75%||11.31%|
Apollo Global Management beats Waddell & Reed Financial on 13 of the 17 factors compared between the two stocks.
About Apollo Global Management
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.
About Waddell & Reed Financial
Waddell & Reed Financial, Inc., incorporated on December 24, 1981, is a holding company. The Company is a mutual fund and asset management company. The Company provides investment management, investment advisory, investment product underwriting, and distribution and shareholder services administration to Waddell & Reed Advisors group of mutual funds (the Advisors Funds), Ivy Funds, Ivy Funds Variable Insurance Portfolios (Ivy Funds VIP), InvestEd Portfolios and 529 college savings plan (collectively, the Funds), and the Ivy Global Investors Fund SICAV (the SICAV) and its Ivy Global Investors sub-funds (the IGI Funds), and institutional and separately managed accounts. The Company operates its business through a distribution network. Its retail products are distributed through third parties, such as other broker-dealers, registered investment advisors and various retirement platforms or through associated independent contractor financial advisors.
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