Head-To-Head Comparison: Apollo Investment Corporation (AINV) vs. The Competition

Apollo Investment Corporation (NASDAQ: AINV) is one of 589 public companies in the “Closed End Funds” industry, but how does it compare to its peers? We will compare Apollo Investment Corporation to related companies based on the strength of its analyst recommendations, valuation, risk, institutional ownership, profitability, earnings and dividends.

Institutional & Insider Ownership

45.8% of Apollo Investment Corporation shares are held by institutional investors. Comparatively, 23.8% of shares of all “Closed End Funds” companies are held by institutional investors. 0.3% of Apollo Investment Corporation shares are held by insiders. Comparatively, 4.1% of shares of all “Closed End Funds” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Apollo Investment Corporation has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Apollo Investment Corporation’s peers have a beta of 0.56, indicating that their average share price is 44% less volatile than the S&P 500.

Dividends

Apollo Investment Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 9.9%. Apollo Investment Corporation 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 8.7% and pay out 94.7% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Apollo Investment Corporation and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Apollo Investment Corporation $279.86 million $18.37 million 16.83
Apollo Investment Corporation Competitors $238.79 million $43.51 million 144.05

Apollo Investment Corporation has higher revenue, but lower earnings than its peers. Apollo Investment Corporation 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Apollo Investment Corporation 29.87% 9.51% 5.65%
Apollo Investment Corporation Competitors -35.01% 6.74% 5.24%

Analyst Ratings

This is a breakdown of recent ratings for Apollo Investment Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Investment Corporation 1 4 4 0 2.33
Apollo Investment Corporation Competitors 232 1565 1922 31 2.47

Apollo Investment Corporation currently has a consensus price target of $6.41, suggesting a potential upside of 5.71%. As a group, “Closed End Funds” companies have a potential upside of 88.13%. Given Apollo Investment Corporation’s peers stronger consensus rating and higher possible upside, analysts clearly believe Apollo Investment Corporation has less favorable growth aspects than its peers.

Summary

Apollo Investment Corporation peers beat Apollo Investment Corporation on 8 of the 15 factors compared.

Apollo Investment Corporation 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.

Receive News & Ratings for Apollo Investment Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Apollo Investment Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply