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

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 investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

72.7% of Compass Diversified shares are held by institutional investors. 1.6% of Compass Diversified shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

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

	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, indicating a potential upside of 25.62%. Given Compass Diversified’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Compass Diversified is more favorable than Abacus Life, Inc. 9.875% Fixed Rate Senior Notes due 2028.

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

Valuation & Earnings

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

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.