Apollo Global Management (NYSE:APO) and Hamilton Lane (NASDAQ:HLNE) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.
Dividends
Apollo Global Management pays an annual dividend of $2.40 per share and has a dividend yield of 4.5%. Hamilton Lane pays an annual dividend of $1.25 per share and has a dividend yield of 1.4%. Apollo Global Management pays out 88.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hamilton Lane pays out 62.2% of its earnings in the form of a dividend. Apollo Global Management has raised its dividend for 1 consecutive years and Hamilton Lane has raised its dividend for 3 consecutive years.
Volatility and Risk
Apollo Global Management has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, Hamilton Lane has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.
Profitability
This table compares Apollo Global Management and Hamilton Lane's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Apollo Global Management | N/A | 30.32% | 6.29% |
Hamilton Lane | 19.78% | 44.51% | 20.35% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Apollo Global Management and Hamilton Lane, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Apollo Global Management | 0 | 4 | 12 | 0 | 2.75 |
Hamilton Lane | 0 | 3 | 2 | 0 | 2.40 |
Apollo Global Management currently has a consensus target price of $55.4286, indicating a potential upside of 3.94%. Hamilton Lane has a consensus target price of $87.50, indicating a potential downside of 3.66%. Given Apollo Global Management's stronger consensus rating and higher probable upside, equities research analysts clearly believe Apollo Global Management is more favorable than Hamilton Lane.
Institutional and Insider Ownership
72.0% of Apollo Global Management shares are owned by institutional investors. Comparatively, 60.9% of Hamilton Lane shares are owned by institutional investors. 9.3% of Apollo Global Management shares are owned by company insiders. Comparatively, 34.6% of Hamilton Lane shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Apollo Global Management and Hamilton Lane's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Apollo Global Management | $2.93 billion | 4.21 | $843.19 million | $2.71 | 19.65 |
Hamilton Lane | $274.05 million | 17.48 | $60.83 million | $2.01 | 45.18 |
Apollo Global Management has higher revenue and earnings than Hamilton Lane. Apollo Global Management is trading at a lower price-to-earnings ratio than Hamilton Lane, indicating that it is currently the more affordable of the two stocks.
Summary
Apollo Global Management beats Hamilton Lane on 9 of the 17 factors compared between the two stocks.