Apollo Global Management (NYSE:APO – Get Rating) and TPG (NASDAQ:TPG – Get Rating) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.
Analyst Ratings
This is a summary of current ratings and recommmendations for Apollo Global Management and TPG, as reported by MarketBeat.com.
Get Apollo Global Management alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Apollo Global Management | 0 | 4 | 7 | 0 | 2.64 |
| TPG | 0 | 10 | 2 | 0 | 2.17 |
Apollo Global Management currently has a consensus price target of $76.45, indicating a potential upside of 5.94%. TPG has a consensus price target of $34.38, indicating a potential upside of 3.91%. Given Apollo Global Management's stronger consensus rating and higher probable upside, equities analysts clearly believe Apollo Global Management is more favorable than TPG.
Valuation & Earnings
This table compares Apollo Global Management and TPG's revenue, earnings per share (EPS) and valuation.| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Apollo Global Management | $5.95 billion | 6.94 | $1.84 billion | ($5.64) | -12.80 |
| TPG | $4.98 billion | 2.05 | $230.90 million | $0.08 | 413.55 |
Apollo Global Management has higher revenue and earnings than TPG. Apollo Global Management is trading at a lower price-to-earnings ratio than TPG, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Apollo Global Management and TPG's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Apollo Global Management | -48.54% | 64.38% | 16.48% |
| TPG | N/A | 19.09% | 6.83% |
Dividends
Apollo Global Management pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. TPG pays an annual dividend of $1.04 per share and has a dividend yield of 3.1%. Apollo Global Management pays out -28.4% of its earnings in the form of a dividend. TPG pays out 1,300.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
69.0% of Apollo Global Management shares are owned by institutional investors. Comparatively, 12.9% of TPG shares are owned by institutional investors. 15.4% of Apollo Global Management shares are owned by insiders. Comparatively, 79.4% of TPG shares are owned by 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.
Summary
Apollo Global Management beats TPG on 10 of the 14 factors compared between the two stocks.
About Apollo Global Management
(Get Rating)
Apollo Global Management, Inc. provides asset management services. It offers its clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid, and equity. The company was founded in 1990 and is headquartered in New York, NY.
About TPG
(Get Rating)
TPG Inc. operates as an alternative asset manager worldwide. It offers investment management services to unconsolidated funds, collateralized loan obligations, and other vehicles; monitoring services to portfolio companies; advisory services, debt and equity arrangements, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. The company invests in private equity funds, real estate funds, fund of hedge funds, and credit funds. TPG Inc. was founded in 1992 and is headquartered in Fort Worth, Texas. TPG Inc. operates as a subsidiary of TPG GP A, LLC.
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