Apollo Global Management (NYSE:APO) & East Resources Acquisition (NASDAQ:ERES) Critical Analysis

East Resources Acquisition (NASDAQ:ERES) and Apollo Global Management (NYSE:APO) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Institutional and Insider Ownership

18.5% of East Resources Acquisition shares are owned by institutional investors. Comparatively, 77.1% of Apollo Global Management shares are owned by institutional investors. 47.0% of East Resources Acquisition shares are owned by insiders. Comparatively, 8.7% of Apollo Global Management shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares East Resources Acquisition and Apollo Global Management’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
East Resources Acquisition	N/A	N/A	-$640,000.00	N/A	N/A
Apollo Global Management	$32.64 billion	1.96	$5.05 billion	$9.03	12.46

Apollo Global Management has higher revenue and earnings than East Resources Acquisition.

Volatility and Risk

East Resources Acquisition has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500. Comparatively, Apollo Global Management has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Profitability

This table compares East Resources Acquisition and Apollo Global Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
East Resources Acquisition	N/A	N/A	-7.08%
Apollo Global Management	16.27%	20.77%	1.35%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for East Resources Acquisition and Apollo Global Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
East Resources Acquisition	0	0	0	0	N/A
Apollo Global Management	0	3	10	0	2.77

Apollo Global Management has a consensus target price of $114.31, indicating a potential upside of 1.26%. Given Apollo Global Management’s higher probable upside, analysts clearly believe Apollo Global Management is more favorable than East Resources Acquisition.

Summary

Apollo Global Management beats East Resources Acquisition on 9 of the 10 factors compared between the two stocks.

About East Resources Acquisition

East Resources Acquisition Company does not have significant operations. The company focuses on effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to identify business opportunities in the field of energy in North America. The company was incorporated in 2020 and is headquartered in Boca Raton, Florida.

About Apollo Global Management

Apollo Global Management, Inc. is a private equity firm specializing in investments in credit, 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, middle market, growth capital, turnaround, bridge, corporate restructuring, special situation, acquisition, and industry consolidation transactions. 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, 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 $1500 million. The firm seeks to invest in companies with Enterprise value between $750 million to $2500 million. 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, Inc. was founded in 1990 and is headquartered in New York, New York with additional offices in North America, Asia, India and Europe.