Abacus Global Management (NYSE:ABX) versus Piper Sandler Companies (NYSE:PIPR) Critical Review

Abacus Global Management (NYSE:ABX) and Piper Sandler Companies (NYSE:PIPR) are both financial services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Insider & Institutional Ownership

72.8% of Piper Sandler Companies shares are held by institutional investors. 47.0% of Abacus Global Management shares are held by company insiders. Comparatively, 3.1% of Piper Sandler Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Abacus Global Management and Piper Sandler Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abacus Global Management	15.63%	20.02%	9.65%
Piper Sandler Companies	13.94%	21.09%	14.22%

Risk and Volatility

Abacus Global Management has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, Piper Sandler Companies has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Abacus Global Management and Piper Sandler Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abacus Global Management	0	3	0	0	2.00
Piper Sandler Companies	1	2	3	0	2.33

Abacus Global Management presently has a consensus target price of $10.00, indicating a potential upside of 9.83%. Piper Sandler Companies has a consensus target price of $95.06, indicating a potential upside of 20.47%. Given Piper Sandler Companies’ stronger consensus rating and higher possible upside, analysts plainly believe Piper Sandler Companies is more favorable than Abacus Global Management.

Valuation and Earnings

This table compares Abacus Global Management and Piper Sandler Companies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abacus Global Management	$235.24 million	3.74	$36.53 million	$0.39	23.35
Piper Sandler Companies	$1.90 billion	2.94	$281.33 million	$3.96	19.93

Piper Sandler Companies has higher revenue and earnings than Abacus Global Management. Piper Sandler Companies 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.

Summary

Piper Sandler Companies beats Abacus Global Management on 10 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 Piper Sandler Companies

Piper Sandler Companies operates as an investment bank and institutional securities firm that serves corporations, private equity groups, public entities, non-profit entities, and institutional investors in the United States and internationally. The company offers investment banking and institutional sales, trading, and research services for various equity and fixed income products. It provides advisory services, such as mergers and acquisitions, equity private placements, and debt and restructuring advisory; raises capital through equity and debt financings; underwrites municipal issuances; and offers municipal financial advisory and loan placement services, as well as various over-the-counter derivative products. The company also offers public finance investment banking services that focus on state and local governments, and cultural and social service non-profit entities, as well as the education, healthcare, hospitality, senior living, and transportation sectors. In addition, it provides equity and fixed income advisory and trade execution services for institutional investors, and government and non-profit entities. Further, the company is involved in the alternative asset management funds merchant banking and healthcare to invest firm capital and to manage capital from outside investors, as well as trading activities. The company was formerly known as Piper Jaffray Companies and changed its name to Piper Sandler Companies in January 2020. Piper Sandler Companies was founded in 1895 and is headquartered in Minneapolis, Minnesota.