GoHealth (NASDAQ:GOCO – Get Free Report) and Abacus Life (NASDAQ:ABL – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.
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% |
Earnings & Valuation
This table compares GoHealth and Abacus Life”s gross revenue, earnings per share 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) | -1.33 |
| Abacus Life | $161.72 million | 3.98 | -$23.96 million | ($0.06) | -110.83 |
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.
Volatility and Risk
GoHealth has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Abacus Life has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for GoHealth and Abacus Life, as reported by MarketBeat.
| 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, indicating a potential upside of 150.00%. Abacus Life has a consensus price target of $13.13, indicating a potential upside of 97.37%. Given GoHealth’s higher possible upside, research analysts clearly believe GoHealth is more favorable than Abacus Life.
Institutional and Insider Ownership
24.2% of GoHealth shares are held by institutional investors. 34.0% of GoHealth shares are held by company insiders. Comparatively, 47.0% of Abacus Life shares are held 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.
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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