Abacus Life (NASDAQ:ABL) and Jackson Financial (NYSE:JXN) Critical Survey

Jackson Financial (NYSE:JXN) and Abacus Life (NASDAQ:ABL) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Valuation and Earnings

This table compares Jackson Financial 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
Jackson Financial	$3.27 billion	2.04	$946.00 million	$7.23	13.56
Abacus Life	$111.92 million	5.79	-$23.96 million	$0.08	82.94

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jackson Financial	1.73%	15.73%	0.46%
Abacus Life	5.62%	16.90%	8.24%

Analyst Ratings

This is a breakdown of recent ratings for Jackson Financial and Abacus Life, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jackson Financial	1	4	1	1	2.29
Abacus Life	1	0	2	1	2.75

Jackson Financial presently has a consensus price target of $108.80, suggesting a potential upside of 11.01%. Abacus Life has a consensus price target of $12.67, suggesting a potential upside of 90.91%. Given Abacus Life’s stronger consensus rating and higher possible upside, analysts plainly believe Abacus Life is more favorable than Jackson Financial.

Volatility & Risk

Jackson Financial has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Abacus Life has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500.

Insider & Institutional Ownership

90.0% of Jackson Financial shares are owned by institutional investors. 1.6% of Jackson Financial shares are owned by insiders. Comparatively, 47.0% of Abacus Life shares are owned by 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.

Summary

Abacus Life beats Jackson Financial on 9 of the 14 factors compared between the two stocks.

About Jackson Financial

Jackson Financial Inc., through its subsidiaries, provides suite of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Retail Annuities segment offers various retirement income and savings products, including variable, fixed index, fixed, and payout annuities, as well as registered index-linked annuities and lifetime income solutions. The Institutional Products segment provides traditional guaranteed investment contracts; funding agreements comprising agreements issued in conjunction with its participation in the U.S. federal home loan bank program; and medium-term funding agreement-backed notes. The Closed Life and Annuity Blocks segment offers various protection products, such as whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities; and a block of group payout annuities. The company also offers investment management services. It sells its products through a distribution network that includes independent broker-dealers, wirehouses, regional broker-dealers, banks, independent registered investment advisors, third-party platforms, and insurance agents. The company was formerly known as Brooke (Holdco1) Inc. and changed its name to Jackson Financial Inc. in July 2020. Jackson Financial Inc. was incorporated in 2006 and is headquartered in Lansing, Michigan.

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.