Critical Comparison: AIA (OTCMKTS:AAGIY) versus Abacus Life (NASDAQ:ABL)

Abacus Life (NASDAQ:ABL) and AIA (OTCMKTS:AAGIY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Abacus Life and AIA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abacus Life	1	0	2	1	2.75
AIA	0	0	1	0	3.00

Abacus Life currently has a consensus target price of $12.50, suggesting a potential upside of 47.58%. Given Abacus Life’s higher possible upside, equities research analysts plainly believe Abacus Life is more favorable than AIA.

Institutional & Insider Ownership

0.2% of AIA shares are owned by institutional investors. 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 company will outperform the market over the long term.

Risk & Volatility

Abacus Life has a beta of -0.06, meaning that its stock price is 106% less volatile than the S&P 500. Comparatively, AIA has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Abacus Life	5.62%	16.90%	8.24%
AIA	N/A	N/A	N/A

Valuation & Earnings

This table compares Abacus Life and AIA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abacus Life	$111.92 million	7.40	-$23.96 million	$0.08	105.88
AIA	$19.31 billion	5.94	$6.84 billion	N/A	N/A

AIA has higher revenue and earnings than Abacus Life.

Summary

Abacus Life beats AIA on 8 of the 13 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 AIA

AIA Group Limited, together with its subsidiaries, provides life insurance based financial services. The company offers life insurance, accident, and health insurance and savings plans; and employee benefits, credit life, and pension services to corporate clients. It is also involved in the distribution of investment and other financial services products. The company sells its products through a network of agents and partners in Mainland China, Hong Kong, Macau, Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan, Brunei, Vietnam, and India. AIA Group Limited was founded in 1919 and is based in Wan Chai, Hong Kong.