BlackRock (BLK) versus Apollo Global Management (APO) Head-To-Head Analysis

BlackRock (NYSE: BLK) and Apollo Global Management (NYSE:APO) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Profitability

This table compares BlackRock and Apollo Global Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackRock 29.52% 12.09% 1.59%
Apollo Global Management 24.82% 66.61% 22.21%

Dividends

BlackRock pays an annual dividend of $10.00 per share and has a dividend yield of 2.1%. Apollo Global Management pays an annual dividend of $2.08 per share and has a dividend yield of 6.7%. BlackRock pays out 46.8% of its earnings in the form of a dividend. Apollo Global Management pays out 68.0% 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. BlackRock has increased its dividend for 7 consecutive years.

Earnings and Valuation

This table compares BlackRock and Apollo Global Management’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
BlackRock $11.16 billion 6.94 $3.17 billion $21.36 22.44
Apollo Global Management $1.97 billion 3.04 $402.85 million $3.06 10.09

BlackRock has higher revenue and earnings than Apollo Global Management. Apollo Global Management is trading at a lower price-to-earnings ratio than BlackRock, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

BlackRock has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Apollo Global Management has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Institutional & Insider Ownership

82.2% of BlackRock shares are held by institutional investors. Comparatively, 73.5% of Apollo Global Management shares are held by institutional investors. 1.9% of BlackRock shares are held by insiders. Comparatively, 4.1% 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 stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for BlackRock and Apollo Global Management, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackRock 0 3 8 0 2.73
Apollo Global Management 0 3 8 0 2.73

BlackRock currently has a consensus target price of $488.00, indicating a potential upside of 1.82%. Apollo Global Management has a consensus target price of $33.18, indicating a potential upside of 7.52%. Given Apollo Global Management’s higher possible upside, analysts plainly believe Apollo Global Management is more favorable than BlackRock.

Summary

BlackRock beats Apollo Global Management on 10 of the 15 factors compared between the two stocks.

About BlackRock

BlackRock, Inc. (BlackRock) is an investment management company. BlackRock provides a range of investment and risk management services to institutional and retail clients worldwide. Its diverse platform of active (alpha) and index (beta) investment strategies across asset classes enables the Company to tailor investment outcomes and asset allocation solutions for clients. Its product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. Its products are offered directly and through intermediaries in a range of vehicles, including open-end and closed-end mutual funds, iShares exchange-traded funds (ETFs), separate accounts, collective investment funds and other pooled investment vehicles. It offers its Aladdin investment system, as well as risk management, outsourcing, advisory and technology services, to institutional investors and wealth management intermediaries under the BlackRock Solutions name.

About Apollo Global Management

Apollo Global Management, LLC (Apollo) is an alternative investment manager in private equity, credit and real estate. The Company raises, invests and manages funds on behalf of pension, endowment and sovereign wealth funds, as well as other institutional and individual investors. The Company’s segments include private equity, credit and real estate. The private equity segment invests in control equity and related debt instruments, convertible securities and distressed debt investments. The credit segment invests in non-control corporate and structured debt instruments, including performing, stressed and distressed investments across the capital structure. The real estate segment invests in real estate equity for the acquisition and recapitalization of real estate assets, portfolios, platforms and operating companies, and real estate debt, including first mortgage and mezzanine loans, preferred equity and commercial mortgage backed securities.

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