AllianceBernstein (NYSE:AB) and Apollo Global Management (NYSE:APO) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Volatility and Risk
AllianceBernstein has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Apollo Global Management has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.
Institutional and Insider Ownership
17.8% of AllianceBernstein shares are held by institutional investors. Comparatively, 72.0% of Apollo Global Management shares are held by institutional investors. 2.7% of AllianceBernstein shares are held by insiders. Comparatively, 9.3% of Apollo Global Management shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for AllianceBernstein and Apollo Global Management, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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AllianceBernstein | 0 | 5 | 3 | 0 | 2.38 |
Apollo Global Management | 0 | 4 | 12 | 0 | 2.75 |
AllianceBernstein currently has a consensus target price of $36.8750, indicating a potential downside of 8.09%. Apollo Global Management has a consensus target price of $55.4286, indicating a potential upside of 7.48%. Given Apollo Global Management's stronger consensus rating and higher probable upside, analysts clearly believe Apollo Global Management is more favorable than AllianceBernstein.
Dividends
AllianceBernstein pays an annual dividend of $3.88 per share and has a dividend yield of 9.7%. Apollo Global Management pays an annual dividend of $2.40 per share and has a dividend yield of 4.7%. AllianceBernstein pays out 154.0% 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 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. Apollo Global Management has raised its dividend for 1 consecutive years.
Earnings & Valuation
This table compares AllianceBernstein and Apollo Global Management's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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AllianceBernstein | $3.52 billion | 1.12 | $238.56 million | $2.52 | 15.92 |
Apollo Global Management | $2.93 billion | 4.08 | $843.19 million | $2.71 | 19.03 |
Apollo Global Management has lower revenue, but higher earnings than AllianceBernstein. AllianceBernstein is trading at a lower price-to-earnings ratio than Apollo Global Management, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares AllianceBernstein and Apollo Global Management's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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AllianceBernstein | 7.33% | 17.85% | 17.84% |
Apollo Global Management | N/A | 30.32% | 6.29% |
Summary
Apollo Global Management beats AllianceBernstein on 12 of the 17 factors compared between the two stocks.