Financial Survey: Global Payments (NYSE:GPN) versus Abacus Global Management (NYSE:ABX)

Abacus Global Management (NYSE:ABX) and Global Payments (NYSE:GPN) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Abacus Global Management	10.55%	21.03%	10.19%
Global Payments	-9.16%	13.80%	5.73%

Volatility and Risk

Abacus Global Management has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, Global Payments has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abacus Global Management	$235.24 million	3.28	$36.53 million	$0.28	28.16
Global Payments	$7.71 billion	2.89	$1.40 billion	($2.98)	-28.27

Global Payments has higher revenue and earnings than Abacus Global Management. Global Payments 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.

Insider & Institutional Ownership

89.8% of Global Payments shares are held by institutional investors. 46.4% of Abacus Global Management shares are held by insiders. Comparatively, 0.6% of Global Payments shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Abacus Global Management and Global Payments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abacus Global Management	0	3	1	1	2.60
Global Payments	3	17	12	0	2.28

Abacus Global Management presently has a consensus target price of $12.00, indicating a potential upside of 52.21%. Global Payments has a consensus target price of $95.86, indicating a potential upside of 13.79%. Given Abacus Global Management’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Abacus Global Management is more favorable than Global Payments.

Summary

Abacus Global Management beats Global Payments on 10 of the 15 factors compared between the two stocks.

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.

About Global Payments

Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, payroll and reporting, and human capital management. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments, account payables, and electronic payment alternatives solutions for businesses and governments. It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations. The company was founded in 1967 and is headquartered in Atlanta, Georgia.