Abacus Global Management (NYSE:ABX) and Virtu Financial (NYSE:VIRT) Critical Survey

Virtu Financial (NYSE:VIRT) and Abacus Global Management (NYSE:ABX) are both financial services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Virtu Financial and Abacus Global Management, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virtu Financial	1	5	3	0	2.22
Abacus Global Management	0	3	0	0	2.00

Virtu Financial presently has a consensus price target of $44.00, indicating a potential upside of 1.45%. Abacus Global Management has a consensus price target of $11.00, indicating a potential upside of 22.97%. Given Abacus Global Management’s higher possible upside, analysts clearly believe Abacus Global Management is more favorable than Virtu Financial.

Institutional & Insider Ownership

45.8% of Virtu Financial shares are held by institutional investors. 46.7% of Virtu Financial shares are held by insiders. Comparatively, 47.0% of Abacus Global Management shares are held 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.

Earnings and Valuation

This table compares Virtu Financial and Abacus Global Management”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virtu Financial	$3.63 billion	1.85	$468.36 million	$5.13	8.45
Abacus Global Management	$235.24 million	3.72	$36.53 million	$0.37	24.18

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

Volatility & Risk

Virtu Financial has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Abacus Global Management has a beta of -0.14, indicating that its share price is 114% less volatile than the S&P 500.

Profitability

This table compares Virtu Financial and Abacus Global Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virtu Financial	12.90%	48.35%	4.24%
Abacus Global Management	15.53%	19.20%	9.26%

Summary

Virtu Financial beats Abacus Global Management on 8 of the 14 factors compared between the two stocks.

About Virtu Financial

Virtu Financial, Inc., a financial services company, provides data, analytics, and connectivity products to clients worldwide. The company operates in two segments, Market Making and Execution Services. Its product suite includes offerings in execution, liquidity sourcing, analytics and broker-neutral, and multi-dealer platforms in workflow technology. The company’s solutions enable clients to trade on various venues across countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income, cryptocurrencies, and other commodities. Its analytics platform provides a range of pre- and post-trade services, data products, and compliance tools for clients to invest, trade, and manage risk across markets. Virtu Financial, Inc. was founded in 2008 and is headquartered in New York, New York.

About Abacus Global Management

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.