Comparing Abacus Life, Inc. 9.875% Fixed Rate Senior Notes due 2028 (NASDAQ:ABLLL) and Compass Diversified (NYSE:CODI)

Compass Diversified (NYSE:CODI) and Abacus Life, Inc. 9.875% Fixed Rate Senior Notes due 2028 (NASDAQ:ABLLL) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Earnings and Valuation

This table compares Compass Diversified and Abacus Life, Inc. 9.875% Fixed Rate Senior Notes due 2028″s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Diversified	$1.85 billion	0.41	-$226.41 million	($3.91)	-2.58
Abacus Life, Inc. 9.875% Fixed Rate Senior Notes due 2028	$250.49 million	N/A	N/A	N/A	N/A

Abacus Life, Inc. 9.875% Fixed Rate Senior Notes due 2028 has lower revenue, but higher earnings than Compass Diversified.

Insider & Institutional Ownership

72.7% of Compass Diversified shares are owned by institutional investors. 1.6% of Compass Diversified shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Compass Diversified and Abacus Life, Inc. 9.875% Fixed Rate Senior Notes due 2028’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compass Diversified	-12.30%	-9.53%	0.06%
Abacus Life, Inc. 9.875% Fixed Rate Senior Notes due 2028	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Compass Diversified and Abacus Life, Inc. 9.875% Fixed Rate Senior Notes due 2028, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Diversified	1	3	2	0	2.17
Abacus Life, Inc. 9.875% Fixed Rate Senior Notes due 2028	0	0	0	0	0.00

Compass Diversified currently has a consensus price target of $12.67, suggesting a potential upside of 25.62%. Given Compass Diversified’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Compass Diversified is more favorable than Abacus Life, Inc. 9.875% Fixed Rate Senior Notes due 2028.

Summary

Compass Diversified beats Abacus Life, Inc. 9.875% Fixed Rate Senior Notes due 2028 on 7 of the 9 factors compared between the two stocks.

About Compass Diversified

Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments. It seeks to invest in niche industrial or branded consumer companies, manufacturing, distribution, consumer products, business services sector, healthcare, safety & security, electronic components, food and foodservice. The firm prefers to invest in companies based in North America. It seeks to invest between $100 million and $800 million in companies with an EBITDA between $15 million to $80 million. It seeks to acquire controlling ownership interests in its portfolio companies and can make additional platform acquisitions. The firm prefer to have majority stake in companies. The firm invests through its balance sheet and typically holds investments between five to seven years. Compass Diversified was founded in 2006 and is based in Westport, Connecticut with an additional office in Costa Mesa, California.