Head-To-Head Analysis: Abacus Life (NASDAQ:ABL) and Federated Hermes (NYSE:FHI)

Abacus Life (NASDAQ:ABL) and Federated Hermes (NYSE:FHI) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Abacus Life and Federated Hermes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abacus Life	0	0	5	1	3.17
Federated Hermes	1	3	2	0	2.17

Abacus Life presently has a consensus price target of $14.00, suggesting a potential upside of 71.78%. Federated Hermes has a consensus price target of $41.17, suggesting a potential upside of 9.55%. Given Abacus Life’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Abacus Life is more favorable than Federated Hermes.

Profitability

This table compares Abacus Life and Federated Hermes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abacus Life	-11.65%	12.88%	6.51%
Federated Hermes	16.44%	30.31%	16.21%

Volatility and Risk

Abacus Life has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, Federated Hermes has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Insider and Institutional Ownership

75.9% of Federated Hermes shares are owned by institutional investors. 79.2% of Abacus Life shares are owned by insiders. Comparatively, 3.8% of Federated Hermes shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Abacus Life and Federated Hermes”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abacus Life	$111.92 million	7.05	$9.52 million	($0.30)	-27.17
Federated Hermes	$1.63 billion	1.87	$268.31 million	$3.19	11.78

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

Summary

Federated Hermes beats Abacus Life on 9 of the 15 factors compared between the two stocks.

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.

About Federated Hermes

Federated Hermes, Inc. is a publicly owned investment manager. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors. Through its subsidiaries, it manages separate client-focused equity, fixed income, balanced and money market mutual funds along with separate client-focused equity, fixed income, money market, and balanced portfolios. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of small-cap, mid-cap, and large-cap companies. The firm makes its fixed income investments in ultra-short, short-term, and intermediate-term mortgage-backed, U.S. Government, U.S. corporate, high yield, and municipal securities. It employs both fundamental and quantitative analysis to make its equity investments. Federated Hermes, Inc. was founded in 1955 and is based in Pittsburgh, Pennsylvania with additional offices in New York City and London, United Kingdom.