Abrdn (OTCMKTS:SLFPY – Get Free Report) and XP (NASDAQ:XP – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Dividends
Abrdn pays an annual dividend of $0.64 per share and has a dividend yield of 5.8%. XP pays an annual dividend of $0.18 per share and has a dividend yield of 0.9%. XP pays out 10.4% of its earnings in the form of a dividend.
Profitability
This table compares Abrdn and XP’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Abrdn | N/A | N/A | N/A |
| XP | 27.51% | 23.08% | 1.37% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Abrdn | $1.68 billion | 3.03 | $526.16 million | N/A | N/A |
| XP | $3.30 billion | 3.44 | $925.91 million | $1.73 | 12.20 |
XP has higher revenue and earnings than Abrdn.
Analyst Ratings
This is a breakdown of current ratings and price targets for Abrdn and XP, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Abrdn | 0 | 2 | 0 | 0 | 2.00 |
| XP | 0 | 3 | 5 | 1 | 2.78 |
XP has a consensus price target of $22.86, suggesting a potential upside of 8.33%. Given XP’s stronger consensus rating and higher possible upside, analysts clearly believe XP is more favorable than Abrdn.
Institutional & Insider Ownership
59.2% of XP shares are owned by institutional investors. 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.
Risk & Volatility
Abrdn has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, XP has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
Summary
XP beats Abrdn on 11 of the 14 factors compared between the two stocks.
About Abrdn
abrdn plc provides asset management services in the United Kingdom, Europe, North America, and Asia. The company offers investment solutions and funds; long-term savings and investment products to individual and corporate customers; and life insurance and savings products. It provides its products through institutional, wholesale, and retail distribution channels. It also makes real estate investments. The company was formerly known as Standard Life Aberdeen plc. abrdn plc was founded in 1825 and is headquartered in Edinburgh, United Kingdom.
About XP
XP Inc. provides financial products and services in Brazil. It offers securities brokerage, private pension plans, commercial, and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth customers and institutional clients. The company also offers XP Educação, an online financial education portal that offers seminars, classes, and learning tools to help teach individuals on topics, such as basics of investing, techniques, and investment strategies, as well as insurance brokerage services. In addition, it operates XP Platform, an open product platform that provides clients to access investment products in the market, including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds, and others. The company was founded in 2001 and is based in São Paulo, Brazil.
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