Janus Henderson Group (NYSE:JHG) and Apollo Global Management (NYSE:APO) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Dividends
Janus Henderson Group pays an annual dividend of $1.44 per share and has a dividend yield of 4.9%. Apollo Global Management pays an annual dividend of $2.40 per share and has a dividend yield of 4.9%. Janus Henderson Group pays out 58.3% of its earnings in the form of a dividend. 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. Janus Henderson Group has raised its dividend for 1 consecutive years and Apollo Global Management has raised its dividend for 1 consecutive years. Janus Henderson Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Janus Henderson Group has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Apollo Global Management has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.
Valuation & Earnings
This table compares Janus Henderson Group and Apollo Global Management's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Janus Henderson Group | $2.19 billion | 2.30 | $427.60 million | $2.47 | 11.83 |
Apollo Global Management | $2.93 billion | 3.91 | $843.19 million | $2.71 | 18.25 |
Apollo Global Management has higher revenue and earnings than Janus Henderson Group. Janus Henderson Group 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.
Insider and Institutional Ownership
77.2% of Janus Henderson Group shares are held by institutional investors. Comparatively, 72.0% of Apollo Global Management shares are held by institutional investors. 2.1% of Janus Henderson Group shares are held by company insiders. Comparatively, 9.3% of Apollo Global Management shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Janus Henderson Group and Apollo Global Management's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Janus Henderson Group | 3.71% | 10.41% | 6.93% |
Apollo Global Management | N/A | 30.32% | 6.29% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Janus Henderson Group and Apollo Global Management, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Janus Henderson Group | 3 | 6 | 1 | 0 | 1.80 |
Apollo Global Management | 0 | 5 | 9 | 0 | 2.64 |
Janus Henderson Group presently has a consensus price target of $22.9889, suggesting a potential downside of 21.35%. Apollo Global Management has a consensus price target of $53.0909, suggesting a potential upside of 7.34%. Given Apollo Global Management's stronger consensus rating and higher possible upside, analysts clearly believe Apollo Global Management is more favorable than Janus Henderson Group.
Summary
Apollo Global Management beats Janus Henderson Group on 10 of the 16 factors compared between the two stocks.