Apollo vs. T. Rowe Price: Which Asset Manager Has Better Upside?

T. Rowe Price Group TROW and Apollo Global Management APO are two of the most well-known players in the asset management industry, but with different strengths. Apollo focuses on private equity and alternative assets, while T. Rowe Price specializes in mutual funds and active equity/fixed-income management. Both compete for investor capital in the broader asset management industry.Let’s closely examine other factors at play for TROW and APO to determine which stock has more upside potential.The Case for Apollo Apollo’s diverse business model ensures sustainable earnings. The company’s diversified AUM across various asset classes, client bases, and geographies offers support. Its AUM balance witnessed a CAGR of 7.8% over the past three years (2021-2024). The increase in AUM is primarily driven by the growth of its retirement services client assets, subscriptions across the platform, and new financing facilities. The momentum continued in the first half of 2025. By 2029, Apollo expects its total AUM to reach almost $1.5 trillion by scaling its private equity business.Growth is being reinforced through acquisitions and partnerships. This month, Apollo completed its acquisition of Bridge Investment Group Holdings, enhancing real estate and infrastructure capabilities. It also extended a multi-billion-dollar partnership with Mubadala, launched a $25 billion private credit program with Citigroup, and partnered with State Street Global Advisors to broaden retail access to private markets.On the financial side, Apollo has demonstrated robust organic growth. Revenues expanded at a 63.7% CAGR (2021–2024), though growth moderated in the first half of 2025. The expansion of retail channels through Athene, alongside strong inflows, positions Apollo for continued revenue gains across Asset Management and Retirement Services.The Case for TROW T. Rowe Price’s diversified AUM across various asset classes, client bases, and geographies offers support and ensures sustainable earnings. Its AUM balance witnessed a CAGR of 2.3% over the past four years (2020-2024). Further, the uptrend in AUM persisted in the first six months of 2025 on the back of market appreciation and continued strength in multi-asset and fixed income. A strong brand, consistent investment track record, and decent business volumes are expected to keep supporting AUM growth in the upcoming period. Further, the company has made efforts to expand its business operations through alliances and acquisitions. This month, T. Rowe Price teamed up with Goldman Sachs GS to offer individual investors greater access to private markets. In 2024, T. Rowe announced plans for a partnership with Aspida. Through this partnership, the company expects to manage public and private assets for Aspida. This highlights its continued commitment to the expansion of the insurance business and to delivering innovative investment opportunities for its clients. In 2023, it acquired Retiree, a fintech firm providing innovative retirement income planning software.Organic growth remains a key strength at T. Rowe Price, as reflected in its revenue growth story. Net revenues saw a four-year (ended 2024) CAGR of 3.4%. The trend continued in the first half of 2025. Going forward, the company’s focus on fortifying its business by enhancing investment capabilities, broadening distribution reach, and investing in new product offerings will support top-line growth.How do Earnings Estimates Compare for APO & TROW?The Zacks Consensus Estimate for APO’s 2025 and 2026 earnings implies a year-over-year rise of 4.7% and 19.3%, respectively. Earnings estimates for both years have been revised upward over the past 60 days.Earnings EstimatesImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for TROW’s 2025 earnings implies a year-over-year decline of 1.6% while for 2026, it suggests a rise of 4.9%. Earnings estimates for both years have been revised upward over the past 60 days.Earnings EstimatesImage Source: Zacks Investment Research APO & TROW: Price Performance, Valuations & Other ComparisonsOver the past year, APO outperformed the industry, while T. Rowe Price lagged. APO has gained 17.3%, while TROW has risen 0.5% compared with the industry’s growth of 14%.Price PerformanceImage Source: Zacks Investment ResearchFrom a valuation standpoint, APO is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 16.3X, while TROW is currently trading at a forward 12-month P/E multiple of 11X. Both are trading at a discount compared to the industry’s average of 17.45X.Price-to-Earnings F12MImage Source: Zacks Investment ResearchBoth Apollo and T. Rowe Price reward their shareholders handsomely. Apollo raised its dividend five times over the past five years. It has a dividend yield of 1.5%. Similarly, TROW raised its dividend five times over the past five years. It has a dividend yield of 4.8%.TROW and APO: Which Offers More Value?While both Apollo and T. Rowe Price are strong players in the asset management industry, Apollo offers greater upside potential for investors. Its diversified and rapidly growing alternative asset platform, aggressive expansion through acquisitions and strategic partnerships, and strong earnings growth trajectory position it well for continued outperformance.In contrast, T. Rowe Price delivers steady, reliable growth and high dividend yield, but its more conservative approach and slower AUM and revenue growth limit its upside relative to Apollo. Coupled with stronger stock performance over the past year and a promising 2026 earnings outlook, APO offers better upside potential for growth-oriented investors seeking exposure to the alternative asset space.TROW and APO currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report Apollo Global Management Inc. (APO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks