Financial Comparison: Abacus Life (NASDAQ:ABL) and ArrowMark Financial (NASDAQ:BANX)

ArrowMark Financial (NASDAQ:BANX) and Abacus Life (NASDAQ:ABL) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Volatility and 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 0.14, indicating that its stock price is 86% less volatile than the S&P 500.

Earnings and Valuation

This table compares ArrowMark Financial and Abacus Life”s revenue, earnings per share 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	$102.41 million	5.72	$9.52 million	($0.18)	-38.44

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for ArrowMark Financial and Abacus Life, as reported by MarketBeat.

	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.

Insider & Institutional Ownership

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

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%

Summary

Abacus Life beats ArrowMark Financial on 8 of the 13 factors compared between the two stocks.

About ArrowMark Financial

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

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.