Reviewing Brookfield Wealth Solutions (NYSE:BNT) and Abacus Global Management (NYSE:ABX)
by Mitch Edgeman · The Markets DailyAbacus Global Management (NYSE:ABX – Get Free Report) and Brookfield Wealth Solutions (NYSE:BNT – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.
Valuation & Earnings
This table compares Abacus Global Management and Brookfield Wealth Solutions”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Abacus Global Management | $267.28 million | 3.04 | $36.53 million | $0.28 | 29.70 |
| Brookfield Wealth Solutions | $12.06 billion | 1.03 | $766.00 million | $0.26 | 141.81 |
Brookfield Wealth Solutions has higher revenue and earnings than Abacus Global Management. Abacus Global Management is trading at a lower price-to-earnings ratio than Brookfield Wealth Solutions, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Abacus Global Management and Brookfield Wealth Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Abacus Global Management | 0 | 3 | 1 | 1 | 2.60 |
| Brookfield Wealth Solutions | 0 | 1 | 0 | 0 | 2.00 |
Abacus Global Management presently has a consensus price target of $12.00, indicating a potential upside of 44.28%. Given Abacus Global Management’s stronger consensus rating and higher probable upside, equities analysts clearly believe Abacus Global Management is more favorable than Brookfield Wealth Solutions.
Risk & Volatility
Abacus Global Management has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500. Comparatively, Brookfield Wealth Solutions has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
Insider and Institutional Ownership
20.3% of Brookfield Wealth Solutions shares are owned by institutional investors. 46.4% of Abacus Global Management shares are owned by insiders. Comparatively, 1.0% of Brookfield Wealth Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Abacus Global Management and Brookfield Wealth Solutions’ 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% |
| Brookfield Wealth Solutions | 0.15% | 0.10% | 0.01% |
Dividends
Abacus Global Management pays an annual dividend of $0.28 per share and has a dividend yield of 3.4%. Brookfield Wealth Solutions pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Abacus Global Management pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Wealth Solutions pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Abacus Global Management is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Abacus Global Management beats Brookfield Wealth Solutions on 12 of the 17 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 Brookfield Wealth Solutions
Brookfield Wealth Solutions is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions. Through our operating subsidiaries, we offer a broad range of insurance products and services, including annuities, personal and commercial property and casualty insurance and life insurance.The company was incorporated in 2020 and is headquartered in Pembroke, Bermuda.