Head-To-Head Review: Global Payments (NYSE:GPN) and Abacus Global Management (NYSE:ABX)

Global Payments (NYSE:GPN) and Abacus Global Management (NYSE:ABX) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Dividends

Global Payments pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Abacus Global Management pays an annual dividend of $0.28 per share and has a dividend yield of 3.3%. Global Payments pays out -33.6% of its earnings in the form of a dividend. Abacus Global Management pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Global Payments and Abacus Global Management”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Payments	$10.21 billion	2.20	$1.40 billion	($2.98)	-28.50
Abacus Global Management	$267.28 million	3.08	$36.53 million	$0.28	30.05

Global Payments has higher revenue and earnings than Abacus Global Management. Global Payments 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Payments	-9.16%	13.80%	5.73%
Abacus Global Management	10.55%	21.03%	10.19%

Analyst Ratings

This is a breakdown of recent ratings for Global Payments and Abacus Global Management, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Payments	3	16	13	0	2.31
Abacus Global Management	0	3	1	1	2.60

Global Payments currently has a consensus price target of $96.17, suggesting a potential upside of 13.23%. Abacus Global Management has a consensus price target of $10.00, suggesting a potential upside of 18.84%. Given Abacus Global Management’s stronger consensus rating and higher possible upside, analysts clearly believe Abacus Global Management is more favorable than Global Payments.

Volatility and Risk

Global Payments has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Abacus Global Management has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500.

Institutional & Insider Ownership

89.8% of Global Payments shares are owned by institutional investors. 0.6% of Global Payments shares are owned by company insiders. Comparatively, 46.4% of Abacus Global Management shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Abacus Global Management beats Global Payments on 11 of the 17 factors compared between the two stocks.

About Global Payments

Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, payroll and reporting, and human capital management. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments, account payables, and electronic payment alternatives solutions for businesses and governments. It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations. The company was founded in 1967 and is headquartered in Atlanta, Georgia.

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.