Financial Contrast: Apollo Investment (NASDAQ:AINV) & Its Rivals

Apollo Investment (NASDAQ: AINV) is one of 547 publicly-traded companies in the “Closed End Funds” industry, but how does it compare to its peers? We will compare Apollo Investment to similar companies based on the strength of its earnings, valuation, institutional ownership, dividends, analyst recommendations, risk and profitability.

Risk and Volatility

Apollo Investment has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Apollo Investment’s peers have a beta of 0.55, meaning that their average stock price is 45% less volatile than the S&P 500.

Dividends

Apollo Investment pays an annual dividend of $0.60 per share and has a dividend yield of 10.2%. Apollo Investment pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Closed End Funds” companies pay a dividend yield of 8.0% and pay out 92.6% of their earnings in the form of a dividend.

Profitability

This table compares Apollo Investment and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apollo Investment 29.87% 9.51% 5.65%
Apollo Investment Competitors -17.05% 7.52% 5.79%

Valuation & Earnings

This table compares Apollo Investment and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Apollo Investment $279.86 million $18.37 million 16.42
Apollo Investment Competitors $238.17 million $45.26 million 311.95

Apollo Investment has higher revenue, but lower earnings than its peers. Apollo Investment is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

46.7% of Apollo Investment shares are held by institutional investors. Comparatively, 23.5% of shares of all “Closed End Funds” companies are held by institutional investors. 0.3% of Apollo Investment shares are held by insiders. Comparatively, 5.1% of shares of all “Closed End Funds” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Apollo Investment and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Investment 1 4 4 0 2.33
Apollo Investment Competitors 238 1581 1942 33 2.47

Apollo Investment currently has a consensus target price of $6.41, suggesting a potential upside of 8.40%. As a group, “Closed End Funds” companies have a potential upside of 48.29%. Given Apollo Investment’s peers stronger consensus rating and higher possible upside, analysts plainly believe Apollo Investment has less favorable growth aspects than its peers.

Summary

Apollo Investment peers beat Apollo Investment on 9 of the 15 factors compared.

Apollo Investment Company Profile

Apollo Investment Corporation is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation. It invests primarily in various forms of debt investments, including secured and unsecured debt, loan investments and/or equity in private middle-market companies. It may also invest in the securities of public companies and in structured products and other investments, such as collateralized loan obligations (CLOs) and credit-linked notes (CLNs). Its portfolio also includes equity interests, such as common stock, preferred stock, warrants or options. It invests in investments in the United States secured and unsecured loans, other debt securities and equity, and may also invests a portion of the portfolio in other investment opportunities, including foreign securities and structured products. Apollo Investment Management, L.P. is the investment advisor of the Company.

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