Financial Analysis: Apollo Global Management (APO) versus Noah (NOAH)

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

Valuation and Earnings

This table compares Apollo Global Management and Noah’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apollo Global Management $1.97 billion 3.37 $402.85 million $3.04 11.27
Noah $362.03 million 7.13 $92.73 million $1.80 25.36

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

Profitability

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

Net Margins Return on Equity Return on Assets
Apollo Global Management 24.82% 64.11% 21.48%
Noah 29.74% 18.11% 11.84%

Insider and Institutional Ownership

72.4% of Apollo Global Management shares are held by institutional investors. Comparatively, 46.9% of Noah shares are held by institutional investors. 4.1% of Apollo Global Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Apollo Global Management has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Noah has a beta of 2.58, suggesting that its share price is 158% more volatile than the S&P 500.

Dividends

Apollo Global Management pays an annual dividend of $1.56 per share and has a dividend yield of 4.6%. Noah does not pay a dividend. Apollo Global Management pays out 51.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings for Apollo Global Management and Noah, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Global Management 0 2 9 0 2.82
Noah 0 0 0 0 N/A

Apollo Global Management presently has a consensus price target of $34.45, indicating a potential upside of 0.54%. Given Apollo Global Management’s higher possible upside, equities analysts clearly believe Apollo Global Management is more favorable than Noah.

Summary

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

Apollo Global Management Company Profile

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.

Noah Company Profile

Noah Holdings Limited is a wealth management service provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China. The Company operates through three segments: wealth management, asset management and Internet finance. It also provides Internet finance services to clients in China. It provides direct access to China’s high net worth population. With approximately 1,100 relationship managers in over 130 branch offices, its coverage network includes China’s regions where high net worth population is concentrated, including the Yangtze River Delta, the Pearl River Delta, the Bohai Rim and other regions. Its product offerings consist primarily of over-the-counter (OTC) wealth management and OTC asset management products, mutual fund products and asset management plans originated in China and designed to cater to the needs of China’s high net worth population.

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