Abacus Life (NASDAQ:ABL) and Brighthouse Financial (NASDAQ:BHF) Head to Head Analysis

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

Analyst Ratings

This is a breakdown of current recommendations for Abacus Life and Brighthouse Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abacus Life	0	0	5	1	3.17
Brighthouse Financial	2	4	1	1	2.13

Abacus Life presently has a consensus target price of $13.70, indicating a potential upside of 112.73%. Brighthouse Financial has a consensus target price of $59.6667, indicating a potential upside of 29.34%. Given Abacus Life’s stronger consensus rating and higher probable upside, analysts clearly believe Abacus Life is more favorable than Brighthouse Financial.

Insider & Institutional Ownership

81.2% of Brighthouse Financial shares are held by institutional investors. 47.0% of Abacus Life shares are held by insiders. Comparatively, 1.4% of Brighthouse Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Abacus Life and Brighthouse Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abacus Life	$111.92 million	5.57	-$23.96 million	($0.06)	-107.33
Brighthouse Financial	$4.72 billion	0.56	$388.00 million	$9.24	4.99

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

Risk & Volatility

Abacus Life has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500. Comparatively, Brighthouse Financial has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares Abacus Life and Brighthouse Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abacus Life	-0.72%	17.65%	8.82%
Brighthouse Financial	10.24%	21.06%	0.47%

Summary

Brighthouse Financial beats Abacus Life on 8 of the 14 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 Brighthouse Financial

Brighthouse Financial, Inc. provides annuity and life insurance products in the United States. It operates through three segments: Annuities, Life, and Run-off. The Annuities segment consists of variable, fixed, index-linked, and income annuities for contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security. The Life segment offers term, universal, whole, and variable life products for policyholders’ needs for financial security and protected wealth transfer. The Run-off segment manages structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, funding agreements, and universal life with secondary guarantees. Brighthouse Financial, Inc. was founded in 1863 and is headquartered in Charlotte, North Carolina.