GoHealth (NASDAQ:GOCO – Get Free Report) and Abacus Life (NASDAQ:ABL – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Institutional & Insider Ownership
24.2% of GoHealth shares are owned by institutional investors. 34.0% of GoHealth shares are owned by company insiders. Comparatively, 47.0% of Abacus Life shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares GoHealth and Abacus Life’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GoHealth | -3.21% | -8.74% | -2.26% |
| Abacus Life | -0.72% | 17.65% | 8.82% |
Volatility & Risk
Valuation and Earnings
This table compares GoHealth and Abacus Life”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GoHealth | $798.89 million | 0.17 | -$2.93 million | ($3.60) | -1.32 |
| Abacus Life | $161.72 million | 3.99 | -$23.96 million | ($0.06) | -111.17 |
GoHealth has higher revenue and earnings than Abacus Life. Abacus Life is trading at a lower price-to-earnings ratio than GoHealth, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for GoHealth and Abacus Life, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GoHealth | 0 | 1 | 1 | 0 | 2.50 |
| Abacus Life | 0 | 0 | 4 | 1 | 3.20 |
GoHealth presently has a consensus price target of $12.00, suggesting a potential upside of 153.16%. Abacus Life has a consensus price target of $13.13, suggesting a potential upside of 96.78%. Given GoHealth’s higher possible upside, equities analysts clearly believe GoHealth is more favorable than Abacus Life.
Summary
Abacus Life beats GoHealth on 9 of the 15 factors compared between the two stocks.
About GoHealth
GoHealth, Inc. operates as a health insurance marketplace and Medicare-focused digital health company in the United States. The company operates a technology platform that leverages machine-learning algorithms of insurance behavioral data to optimize the process for helping individuals find the health insurance plan for their specific needs. It provides Medicare plans, including Medicare Advantage, Medicare Supplement and Prescription Drug, and Medicare Special Needs Plans. The company also offers partner marketing services. It sells its products through carriers and online platform, as well as independent and external agencies. The company was founded in 2001 and is headquartered in Chicago, Illinois.
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.
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