Apollo Investment (NASDAQ:AINV) and Nuveen Va Premium Income Municipal Fund (NYSE:NPV) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Risk and Volatility
Apollo Investment has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Nuveen Va Premium Income Municipal Fund has a beta of -0.01, meaning that its stock price is 101% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Apollo Investment and Nuveen Va Premium Income Municipal Fund, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nuveen Va Premium Income Municipal Fund||0||0||0||0||N/A|
Apollo Investment presently has a consensus target price of $17.17, indicating a potential upside of 3.60%. Given Apollo Investment’s higher probable upside, research analysts clearly believe Apollo Investment is more favorable than Nuveen Va Premium Income Municipal Fund.
Apollo Investment pays an annual dividend of $1.80 per share and has a dividend yield of 10.9%. Nuveen Va Premium Income Municipal Fund pays an annual dividend of $0.52 per share and has a dividend yield of 3.8%. Apollo Investment pays out 99.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Apollo Investment and Nuveen Va Premium Income Municipal Fund’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nuveen Va Premium Income Municipal Fund||N/A||N/A||N/A|
Insider & Institutional Ownership
41.3% of Apollo Investment shares are held by institutional investors. Comparatively, 7.6% of Nuveen Va Premium Income Municipal Fund shares are held by institutional investors. 0.4% of Apollo Investment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Apollo Investment and Nuveen Va Premium Income Municipal Fund’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Apollo Investment||$255.08 million||4.40||$71.95 million||$1.81||9.15|
|Nuveen Va Premium Income Municipal Fund||N/A||N/A||N/A||N/A||N/A|
Apollo Investment has higher revenue and earnings than Nuveen Va Premium Income Municipal Fund.
Apollo Investment beats Nuveen Va Premium Income Municipal Fund on 10 of the 11 factors compared between the two stocks.
About Apollo Investment
Apollo Investment Corporation is business development company specializing in middle market companies. It provides direct equity capital, mezzanine 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 securities of public companies that are thinly traded and may acquire investments in the secondary market and structured products. It prefers to invest in warrants, makes equity co-investments, and may also invest in cash equivalents, U.S. government securities, high-quality debt investments that mature in one year or less, high-yield bonds, distressed debt, non-U.S. investments, or securities of public companies that are not thinly traded. It also focuses on other investments such as collateralized loan obligations and credit-linked notes. The fund typically invests in building materials, business services, cable television, chemicals, consumer products, direct marketing, distribution, energy and utilities, financial services, healthcare, manufacturing, media, publishing, retail and transportation. 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.
About Nuveen Va Premium Income Municipal Fund
Nuveen Virginia Quality Municipal Income Fund is a closed ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is co-managed by Nuveen Fund Advisors LLC and Nuveen Asset Management, LLC. It invests in the fixed income markets of Virginia. The fund invests primarily in municipal securities rated Baa/BBB or better. It invests in securities that provide income exempt from federal and Virginia income tax. The fund employs fundamental analysis with bottom-up stock picking approach to create its portfolio. It benchmarks the performance of its portfolio against the S&P National Municipal Bond Index and the S&P Virginia Municipal Bond Index. The fund was formerly known as Nuveen Virginia Premium Income Municipal Fund. Nuveen Virginia Quality Municipal Income Fund was formed on January 12, 1993 and is domiciled in the United States.
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