Royalty Management (NASDAQ:RMCO – Get Free Report) and Apollo Global Management (NYSE:APO – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.
Earnings & Valuation
This table compares Royalty Management and Apollo Global Management”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Royalty Management | $810,000.00 | 77.01 | -$110,000.00 | ($0.01) | -412.00 |
| Apollo Global Management | $26.11 billion | 2.99 | $4.58 billion | $6.84 | 19.67 |
Profitability
This table compares Royalty Management and Apollo Global Management’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Royalty Management | -9.22% | -2.94% | -2.13% |
| Apollo Global Management | 15.63% | 15.43% | 1.23% |
Dividends
Royalty Management pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Apollo Global Management pays an annual dividend of $2.04 per share and has a dividend yield of 1.5%. Royalty Management pays out -100.0% of its earnings in the form of a dividend. Apollo Global Management pays out 29.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Apollo Global Management has raised its dividend for 3 consecutive years. Apollo Global Management is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Royalty Management and Apollo Global Management, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Royalty Management | 1 | 1 | 1 | 0 | 2.00 |
| Apollo Global Management | 0 | 2 | 12 | 1 | 2.93 |
Apollo Global Management has a consensus target price of $165.62, suggesting a potential upside of 23.08%. Given Apollo Global Management’s stronger consensus rating and higher possible upside, analysts clearly believe Apollo Global Management is more favorable than Royalty Management.
Insider & Institutional Ownership
67.2% of Royalty Management shares are held by institutional investors. Comparatively, 77.1% of Apollo Global Management shares are held by institutional investors. 57.1% of Royalty Management shares are held by insiders. Comparatively, 8.2% of Apollo Global Management shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Royalty Management has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500. Comparatively, Apollo Global Management has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.
Summary
Apollo Global Management beats Royalty Management on 15 of the 18 factors compared between the two stocks.
About Royalty Management
Royalty Management Holding Corporation provides environmental consulting and services in the United States. It is also involved in investing or purchasing assets, such as real estate and mining permits, patents, intellectual property, and emerging technologies. The company was incorporated in 2021 and is based in Fishers, Indiana.
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.
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