Head-To-Head Review: Abacus Global Management (NYSE:ABX) and Virtu Financial (NYSE:VIRT)

Abacus Global Management (NYSE:ABX) and Virtu Financial (NYSE:VIRT) are both financial services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Abacus Global Management and Virtu Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abacus Global Management	0	3	0	0	2.00
Virtu Financial	1	5	3	0	2.22

Abacus Global Management presently has a consensus price target of $11.00, indicating a potential upside of 22.97%. Virtu Financial has a consensus price target of $44.00, indicating a potential upside of 5.81%. Given Abacus Global Management’s higher possible upside, research analysts plainly believe Abacus Global Management is more favorable than Virtu Financial.

Volatility & Risk

Abacus Global Management has a beta of -0.14, meaning that its stock price is 114% less volatile than the S&P 500. Comparatively, Virtu Financial has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Profitability

This table compares Abacus Global Management and Virtu Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abacus Global Management	15.53%	19.20%	9.26%
Virtu Financial	12.90%	48.35%	4.24%

Earnings & Valuation

This table compares Abacus Global Management and Virtu Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abacus Global Management	$235.24 million	3.72	$36.53 million	$0.37	24.18
Virtu Financial	$3.63 billion	1.77	$468.36 million	$5.13	8.11

Virtu Financial has higher revenue and earnings than Abacus Global Management. Virtu Financial is trading at a lower price-to-earnings ratio than Abacus Global Management, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

45.8% of Virtu Financial shares are owned by institutional investors. 47.0% of Abacus Global Management shares are owned by insiders. Comparatively, 47.2% of Virtu Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Virtu Financial beats Abacus Global Management on 9 of the 14 factors compared between the two stocks.

About Abacus Global Management

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.

About Virtu Financial

Virtu Financial, Inc., a financial services company, provides data, analytics, and connectivity products to clients worldwide. The company operates in two segments, Market Making and Execution Services. Its product suite includes offerings in execution, liquidity sourcing, analytics and broker-neutral, and multi-dealer platforms in workflow technology. The company’s solutions enable clients to trade on various venues across countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income, cryptocurrencies, and other commodities. Its analytics platform provides a range of pre- and post-trade services, data products, and compliance tools for clients to invest, trade, and manage risk across markets. Virtu Financial, Inc. was founded in 2008 and is headquartered in New York, New York.