Head to Head Analysis: Cherry Hill Mortgage Investment (NYSE:CHMI) and Apollo Global Management (NYSE:APO)

Apollo Global Management (NYSE:APO) and Cherry Hill Mortgage Investment (NYSE:CHMI) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Dividends

Apollo Global Management pays an annual dividend of $2.25 per share and has a dividend yield of 1.7%. Cherry Hill Mortgage Investment pays an annual dividend of $0.40 per share and has a dividend yield of 13.5%. Apollo Global Management pays out 82.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cherry Hill Mortgage Investment pays out 222.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apollo Global Management has raised its dividend for 3 consecutive years and Cherry Hill Mortgage Investment has raised its dividend for 1 consecutive years.

Profitability

This table compares Apollo Global Management and Cherry Hill Mortgage Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apollo Global Management	5.22%	14.01%	1.18%
Cherry Hill Mortgage Investment	26.43%	21.74%	1.85%

Earnings & Valuation

This table compares Apollo Global Management and Cherry Hill Mortgage Investment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apollo Global Management	$32.05 billion	2.46	$3.49 billion	$2.73	48.96
Cherry Hill Mortgage Investment	$61.10 million	1.80	$6.83 million	$0.18	16.50

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

Insider and Institutional Ownership

77.1% of Apollo Global Management shares are owned by institutional investors. Comparatively, 18.5% of Cherry Hill Mortgage Investment shares are owned by institutional investors. 8.3% of Apollo Global Management shares are owned by insiders. Comparatively, 1.6% of Cherry Hill Mortgage Investment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Apollo Global Management has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Apollo Global Management and Cherry Hill Mortgage Investment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apollo Global Management	0	4	12	1	2.82
Cherry Hill Mortgage Investment	0	4	1	0	2.20

Apollo Global Management presently has a consensus price target of $152.15, indicating a potential upside of 13.85%. Cherry Hill Mortgage Investment has a consensus price target of $3.00, indicating a potential upside of 1.01%. Given Apollo Global Management’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Apollo Global Management is more favorable than Cherry Hill Mortgage Investment.

Summary

Apollo Global Management beats Cherry Hill Mortgage Investment on 14 of the 18 factors compared between the two stocks.

About Apollo Global Management

Apollo Global Management, Inc. is a private equity firm specializing in investments in credit, private equity, infrastructure, secondaries and real estate markets. The firm prefers to invest in private and public 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, middle market, growth, venture capital, turnaround, bridge, corporate restructuring, special situation, acquisition, and industry consolidation transactions. For credit strategies, the firm focuses to invest in multi-sector credit, semi-liquid credit, direct lending, first lien, unitranche, whole loans and private credit. The firm 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 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 also focuses on clean energy, sustainable industry, climate solutions, energy transition, industrial decarbonization, sustainable mobility, sustainable resource use, and sustainable real estate. It seeks to invest in companies based in across Africa, Asia, North America with a focus on United States, Western Europe and Europe. It employs a combination of contrarian, value, and distressed strategies to make its investments. The firm seeks to make investments in the range of $75 million and $1500 million. The firm seeks to invest in companies with Enterprise value between $750 million to $2500 million. The firm conducts in-house research to create its investment portfolio. It seeks to acquire minority and majority positions in its portfolio companies. Apollo Global Management, Inc. was founded in 1990 and is headquartered in New York, New York with additional offices in North America, Asia, Africa and Europe.

About Cherry Hill Mortgage Investment

Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. It operates through Investments in RMBS (residential mortgage-backed securities) and Investments in Servicing Related Assets segments. Cherry Hill Mortgage Investment Corporation qualifies as a real estate investment trust for federal income tax purposes. The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Cherry Hill Mortgage Investment Corporation was incorporated in 2012 and is based in Farmingdale, New Jersey.