Critical Analysis: Abacus Life (NASDAQ:ABL) and ArrowMark Financial (NASDAQ:BANX)

ArrowMark Financial (NASDAQ:BANXGet Free Report) and Abacus Life (NASDAQ:ABLGet Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares ArrowMark Financial and Abacus Life’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ArrowMark Financial N/A N/A N/A
Abacus Life -11.65% 12.88% 6.51%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ArrowMark Financial and Abacus Life, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ArrowMark Financial 0 0 0 0 0.00
Abacus Life 0 0 5 1 3.17

Abacus Life has a consensus target price of $14.30, indicating a potential upside of 106.65%. Given Abacus Life’s stronger consensus rating and higher probable upside, analysts plainly believe Abacus Life is more favorable than ArrowMark Financial.

Valuation & Earnings

This table compares ArrowMark Financial and Abacus Life”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ArrowMark Financial $21.34 million 7.01 $12.63 million N/A N/A
Abacus Life $79.59 million 7.36 $9.52 million ($0.18) -38.44

ArrowMark Financial has higher earnings, but lower revenue than Abacus Life.

Institutional and Insider Ownership

24.9% of ArrowMark Financial shares are held by institutional investors. 0.5% of ArrowMark Financial shares are held by insiders. Comparatively, 79.2% of Abacus Life shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

ArrowMark Financial has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Abacus Life has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Summary

Abacus Life beats ArrowMark Financial on 9 of the 13 factors compared between the two stocks.

About ArrowMark Financial

(Get Free Report)

ArrowMark Financial Corp. is a closed-end balanced mutual fund launched and managed by ArrowMark Asset Management, LLC. It invests in public equity and fixed income markets of global region. For its equity portion, the fund invests in stocks of companies operating across financials, banks sectors. It invests in growth and value stocks of companies across diversified market capitalization. For its fixed income portion, the fund invests in debt and subordinated debt, structured notes and securities, regulatory capital securities which are rated below investment grade. ArrowMark Financial Corp. was formed on February 7, 2013 and is domiciled in the United States.

About Abacus Life

(Get Free Report)

Abacus Life, Inc. operates as an alternative asset manager specializing in life insurance products. It purchases life insurance policies from consumers seeking liquidity and manages policies over time via trading, holding, and/or servicing. The company was founded in 2004 and is based in Orlando, Florida.

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