Abacus Life (NASDAQ:ABL – Get Free Report) and Hennessy Advisors (NASDAQ:HNNA – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.
Risk and Volatility
Abacus Life has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500. Comparatively, Hennessy Advisors has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.
Insider & Institutional Ownership
10.3% of Hennessy Advisors shares are owned by institutional investors. 79.2% of Abacus Life shares are owned by company insiders. Comparatively, 37.8% of Hennessy Advisors shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Abacus Life | 0 | 0 | 5 | 1 | 3.17 |
| Hennessy Advisors | 0 | 0 | 0 | 0 | N/A |
Abacus Life currently has a consensus target price of $14.30, suggesting a potential upside of 67.45%. Given Abacus Life’s higher possible upside, research analysts clearly believe Abacus Life is more favorable than Hennessy Advisors.
Valuation & Earnings
This table compares Abacus Life and Hennessy Advisors”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Abacus Life | $79.59 million | 8.01 | $9.52 million | ($0.10) | -85.39 |
| Hennessy Advisors | $27.13 million | 2.86 | $4.77 million | $0.79 | 12.79 |
Abacus Life has higher revenue and earnings than Hennessy Advisors. Abacus Life is trading at a lower price-to-earnings ratio than Hennessy Advisors, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Abacus Life and Hennessy Advisors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Abacus Life | -6.19% | 7.02% | 3.53% |
| Hennessy Advisors | 22.53% | 6.89% | 4.16% |
Summary
Abacus Life beats Hennessy Advisors 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 Hennessy Advisors
Hennessy Advisors, Inc. is an employee owned investment manager. It provides its services to Hennessy Funds and investment companies. The firm launches and manages equity, fixed income, and balanced mutual funds. It invests in the public equity and fixed income markets across the globe. The firm primarily invests in growth stocks of companies. It conducts in-house research to make its investments. Hennessy Advisors, Inc. was founded in 1989 and is based in Novato, California with additional offices in Boston, Massachusetts and Chapel Hill, North Carolina.
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