Apollo Global Management (NYSE: APO) and Janus Capital Group (NYSE:JNS) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Valuation & Earnings

This table compares Apollo Global Management and Janus Capital Group’s 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 2.76 $496.41 million $2.56 12.29
Janus Capital Group N/A N/A N/A $0.79 18.04

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

Risk and Volatility

Apollo Global Management has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Janus Capital Group has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Apollo Global Management and Janus Capital Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Global Management 0 3 8 0 2.73
Janus Capital Group 1 3 0 0 1.75

Apollo Global Management presently has a consensus price target of $30.00, suggesting a potential downside of 4.61%. Janus Capital Group has a consensus price target of $13.33, suggesting a potential downside of 6.43%. Given Apollo Global Management’s stronger consensus rating and higher possible upside, equities analysts plainly believe Apollo Global Management is more favorable than Janus Capital Group.

Profitability

This table compares Apollo Global Management and Janus Capital Group’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%
Janus Capital Group 12.54% 7.26% 4.48%

Insider and Institutional Ownership

73.5% of Apollo Global Management shares are held by institutional investors. Comparatively, 90.2% of Janus Capital Group shares are held by institutional investors. 4.1% of Apollo Global Management shares are held by company insiders. Comparatively, 2.1% of Janus Capital Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments 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 6.6%. Janus Capital Group pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. 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. Janus Capital Group pays out 55.7% of its earnings in the form of a dividend. Janus Capital Group has raised its dividend for 6 consecutive years.

Summary

Apollo Global Management beats Janus Capital Group on 10 of the 14 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.

Janus Capital Group Company Profile

Janus Capital Group Inc. provides investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, separate accounts, other pooled investment vehicles, exchange-traded products (ETPs) and subadvised relationships (collectively referred to as investment products) in both domestic and international markets. The Company operates through investment management business segment. The Company provides investment management solutions across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives. As of December 31, 2016, the Company’s investment products were distributed through three primary channels: intermediary, institutional and self-directed. Each distribution channel focuses on specific investor groups and the requirements of each group.

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