Comparison between Adams Diversified Equity Fund (NYSE:ADX) and Apollo Investment (NASDAQ:AINV)

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Apollo Investment (NASDAQ:AINV – Get Rating) and Adams Diversified Equity Fund (NYSE:ADX – Get Rating) are both small cap finance companies, but which business is superior? We’ll compare the two companies based on their dividend strength, valuation, risk, profitability, analyst recommendations, earnings, and institutional ownership.

Insider and Institutional Ownership

35.2% of Apollo Investment shares are held by institutional investors. By comparison, 16.0% of shares in the Adams Diversified Equity Fund are held by institutional investors. 0.6% of Apollo Investment shares are held by insiders of the company. By comparison, 0.2% of the shares of the Adams Diversified Equity Fund are held by insiders of the company. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares the net margins, return on equity and return on assets of Apollo Investment and Adams Diversified Equity Fund.

Net margins Return on equity return on assets
Apollo Investment 57.61% 9.14% 3.61%
Adams Diversified Equity Fund N / A N / A N / A

Dividends

Apollo Investment pays an annual dividend of $1.24 per share and has a dividend yield of 9.8%. Adams Diversified Equity Fund pays an annual dividend of $2.98 per share and has a dividend yield of 17.7%. Apollo Investment pays 67.0% of its profits as a dividend. Apollo Investment has increased its dividend for 1 consecutive years.

Risk and Volatility

Apollo Investment has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. In comparison, Adams Diversified Equity Fund has a beta of 1.03, suggesting that its stock price its stock is 3% more volatile than the S&P 500.

Analyst Notes

This is a breakdown of the current ratings and recommendations for Apollo Investment and Adams Diversified Equity Fund, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Apollo Investment 0 2 1 0 2.33
Adams Diversified Equity Fund 0 0 0 0 N / A

Apollo Investment currently has a consensus price target of $13.38, indicating a potential upside of 5.40%. Given Apollo Investment’s possible higher upside, equity research analysts clearly believe that Apollo Investment is more favorable than Adams Diversified Equity Fund.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of Apollo Investment and Adams Diversified Equity Fund.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Apollo Investment $216.75 million 3.73 $111.86 million $1.85 6.86
Adams Diversified Equity Fund N / A N / A N / A N / A N / A

Apollo Investment has higher income and profit than Adams Diversified Equity Fund.

Summary

Apollo Investment beats Adams Diversified Equity Fund on 10 out of 12 factors compared between the two stocks.

Apollo Investment Company Profile (Get a rating)

Apollo Investment Corporation is a closed-end, externally managed, non-diversified investment company that has elected to be treated as a business development company (BDC) under the Investment Companies Act of 1940 ( Act of 1940) specializing in private equity investments in leveraged buyouts, acquisitions, recapitalizations, development capital, refinancing and middle market private companies. It provides direct equity, mezzanine loans, senior secured loans, extended senior loans, unitranche loans, second lien secured loans and senior secured loans, unsecured debt and subordinated debt and loans. It also seeks to invest in PIPES transactions. The fund may also invest in thinly traded public company securities and may acquire secondary market investments and structured products. It prefers to invest in preferred stocks, common stocks/interest stocks and warrants and makes equity co-investments and may also invest in cash equivalents, US government securities, high quality debt securities that mature in a year or less, high yield bonds, distressed debt, non-U.S. investments, or public company securities that are not thinly traded. It also focuses on other investments such as secured loan obligations (CLOs) and credit-linked notes (CLNs). The fund generally invests in construction and building materials, business services, plastics and rubber, advertising, capital goods, education, cable television, chemicals, consumer products /durable and non-durable goods and customer services, direct marketing, energy – oil and gas, power and utilities, aerospace and defense, wholesale trade, telecommunications, financial services, hospitality, gaming, leisure, catering ; environmental industries, healthcare and pharmaceuticals, high-tech industries, beverages, food and tobacco, manufacturing, media – diversified production and printing, printing and publishing, retail, automation, aviation and consumer transportation, transportation, freight and distribution. It invests mainly in the United States. It primarily invests between $20 million and $250 million in its portfolio companies. The fund seeks to make investments with stated maturities of five to 10 years.

Adams Diversified Equity Fund Company Profile (Get a rating)

Adams Diversified Equity Fund logoAdams Diversified Equity Fund, Inc. is a public investment manager. The company offers its services to investment companies. The company invests in the public stock markets of the United States. It invests in shares of large capitalization companies in diversified sectors to make its investments. The company uses fundamental, technical and quantitative analysis with a bottom-up approach to stock selection, while focusing on earnings growth prospects, financial strength, cash flow generation, macroeconomics, capital allocation , market competition and profitability. It obtains external research in addition to its internal research to make its investments. The company compares the performance of its portfolios to the S&P 500 Index. It was formerly known as The Adams Express Company. Adams Diversified Equity Fund, Inc. was founded in 1840 and is based in Baltimore, Maryland.



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