Critical Survey: Manning and Napier (MN) versus Apollo Global Management (APO)

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Manning and Napier (NYSE:MN) and Apollo Global Management (NYSE:APO) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Dividends

Manning and Napier pays an annual dividend of $0.08 per share and has a dividend yield of 3.6%. Apollo Global Management pays an annual dividend of $1.84 per share and has a dividend yield of 6.2%. Manning and Napier pays out 36.4% of its earnings in the form of a dividend. Apollo Global Management pays out -876.2% 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. Apollo Global Management has raised its dividend for 2 consecutive years. Apollo Global Management is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Manning and Napier has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Apollo Global Management has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Manning and Napier 1.98% 12.25% 8.75%
Apollo Global Management 19.45% 16.41% 5.64%

Valuation and Earnings

This table compares Manning and Napier and Apollo Global Management’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manning and Napier $161.33 million 0.21 $3.20 million $0.22 10.18
Apollo Global Management $1.09 billion 5.47 -$10.38 million ($0.21) -141.38

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

Institutional & Insider Ownership

46.8% of Manning and Napier shares are owned by institutional investors. Comparatively, 74.2% of Apollo Global Management shares are owned by institutional investors. 3.4% of Manning and Napier shares are owned by company insiders. Comparatively, 4.1% of Apollo Global Management shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Manning and Napier and Apollo Global Management, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manning and Napier 0 0 0 0 N/A
Apollo Global Management 0 3 4 1 2.75

Apollo Global Management has a consensus target price of $37.00, indicating a potential upside of 24.62%. Given Apollo Global Management’s higher possible upside, analysts plainly believe Apollo Global Management is more favorable than Manning and Napier.

Summary

Apollo Global Management beats Manning and Napier on 13 of the 17 factors compared between the two stocks.

Manning and Napier Company Profile

Manning & Napier, Inc. is publicly owned investment manager. It provides its services to net worth individuals and institutions, including 401(k) plans, pension plans, taft-hartley plans, endowments and foundations. The firm manages separate client-focused equity and fixed income portfolios. It invests in the public equity and fixed income markets of the United States. The firm employs fundamental analysis along with a combination of bottom-up and top-down stock picking approach to create its portfolios. Manning & Napier, Inc. was founded in 1970 and is based in Fairport, New York with additional offices in Dublin, Ohio; St. Petersburg, Florida; and Chicago, Illinois.

Apollo Global Management Company Profile

Apollo Global Management, LLC is a publicly owned investment manager. The firm primarily provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors. It manages client focused portfolios. The firm launches and manages hedge funds for its clients. It also manages real estate funds and private equity funds for its clients. The firm invests in the fixed income and alternative investment markets across the globe. Its alternative investments include investment in private equity and real estate markets. The firm's private equity investments include traditional buyouts, recapitalization, distressed buyouts and debt investments in real estate, corporate partner buyouts, distressed asset, corporate carve-outs, turnaround, bridge, corporate restructuring, special situation, acquisition, and industry consolidation transactions. Its fixed income investments include income-oriented senior loans, bonds, collateralized loan obligations, structured credit, opportunistic credit, non-performing loans, distressed debt, mezzanine debt, and value oriented fixed income securities. The firm seeks to invest in chemicals, commodities, consumer and retail, oil and gas, metals, mining, agriculture, commodities, distribution and transportation, financial and business services, manufacturing and industrial, media distribution, cable, entertainment and leisure, telecom, technology, natural resources, energy, packaging and materials, and satellite and wireless industries. It seeks to invest in companies based in across North America with a focus on United States, and Europe. The firm also makes investments outside North America, primarily in Western Europe and Asia. It employs a combination of contrarian, value, and distressed strategies to make its investments. The firm seeks to make investments in the range of $10 million and $1.5 billion. The firm conducts an in-house research to create its investment portfolio. It seeks to acquire minority and majority positions in its portfolio companies. Apollo Global Management, LLC was founded in 1990 and is headquartered in New York City, with additional offices in New York City; Bethesda, Maryland; Chicago, Illinois; Los Angeles, California; Purchase, New York; Houston, Texas; London, United Kingdom; Frankfurt, Germany; Central, Hong Kong; Singapore; and Luxembourg.

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