Hennessy Advisors (NASDAQ:HNNA – Get Free Report) and Abacus Life (NASDAQ:ABL – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Hennessy Advisors and Abacus Life, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hennessy Advisors | 0 | 0 | 0 | 0 | N/A |
| Abacus Life | 0 | 0 | 5 | 1 | 3.17 |
Abacus Life has a consensus price target of $14.30, indicating a potential upside of 65.13%. Given Abacus Life’s higher possible upside, analysts plainly believe Abacus Life is more favorable than Hennessy Advisors.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Hennessy Advisors | 22.53% | 6.89% | 4.16% |
| Abacus Life | -6.19% | 7.02% | 3.53% |
Institutional and Insider Ownership
10.3% of Hennessy Advisors shares are owned by institutional investors. 37.8% of Hennessy Advisors shares are owned by company insiders. Comparatively, 47.0% of Abacus Life shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Hennessy Advisors has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Abacus Life has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500.
Valuation & Earnings
This table compares Hennessy Advisors and Abacus Life”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hennessy Advisors | $27.13 million | 2.85 | $4.77 million | $0.68 | 14.78 |
| Abacus Life | $95.38 million | 5.80 | $9.52 million | $0.02 | 433.00 |
Abacus Life has higher revenue and earnings than Hennessy Advisors. Hennessy Advisors is trading at a lower price-to-earnings ratio than Abacus Life, indicating that it is currently the more affordable of the two stocks.
Summary
Abacus Life beats Hennessy Advisors on 9 of the 14 factors compared between the two stocks.
About Hennessy Advisors
Hennessy Advisors, Inc. is an employee owned investment manager. It provides its services to Hennessy Funds and investment companies. The firm launches and manages equity, fixed income, and balanced mutual funds. It invests in the public equity and fixed income markets across the globe. The firm primarily invests in growth stocks of companies. It conducts in-house research to make its investments. Hennessy Advisors, Inc. was founded in 1989 and is based in Novato, California with additional offices in Boston, Massachusetts and Chapel Hill, North Carolina.
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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