Head-To-Head Review: Abrdn (OTCMKTS:SLFPY) versus Virtu Financial (NASDAQ:VIRT)

Virtu Financial (NASDAQ:VIRT) and Abrdn (OTCMKTS:SLFPY) are both mid-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

45.8% of Virtu Financial shares are owned by institutional investors. 47.2% of Virtu Financial shares are owned 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.

Risk and Volatility

Virtu Financial has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Abrdn has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Dividends

Virtu Financial pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. Abrdn pays an annual dividend of $0.67 per share and has a dividend yield of 6.2%. Virtu Financial pays out 20.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Virtu Financial and Abrdn, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virtu Financial	1	4	2	0	2.14
Abrdn	0	2	0	0	2.00

Virtu Financial currently has a consensus target price of $41.71, indicating a potential upside of 22.37%. Given Virtu Financial’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Virtu Financial is more favorable than Abrdn.

Valuation and Earnings

This table compares Virtu Financial and Abrdn”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virtu Financial	$3.50 billion	1.49	$276.42 million	$4.62	7.38
Abrdn	$1.75 billion	2.85	$302.86 million	N/A	N/A

Abrdn has lower revenue, but higher earnings than Virtu Financial.

Profitability

This table compares Virtu Financial and Abrdn’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virtu Financial	10.43%	32.08%	3.09%
Abrdn	N/A	N/A	N/A

Summary

Virtu Financial beats Abrdn on 9 of the 14 factors compared between the two stocks.

About Virtu Financial

Virtu Financial, Inc. operates as a financial services company in the United States, Asia Pacific, Canada, EMEA, Ireland, and internationally. The company operates through two segments, Market Making and Execution Services. Its product includes offerings in execution, liquidity sourcing, analytics and broker-neutral, capital markets, and multi-dealer platforms in workflow technology. The company's product allow its clients to trade on various venues across 50 countries and in various asset classes, including global equities, ETFs, options, foreign exchange, futures, fixed income, cryptocurrencies, and myriad other commodities. Its multi-asset analytics platform provides a range of pre- and post-trade services, data products, and compliance tools for clients to invest, trade, and manage risk across global markets. The company was founded in 2008 and is headquartered in New York, New York.

About Abrdn

abrdn plc provides asset management services in the United Kingdom, Europe, North America, and Asia. The company offers investment solutions and funds; long-term savings and investment products to individual and corporate customers; and life insurance and savings products. It provides its products through institutional, wholesale, and retail distribution channels. It also makes real estate investments. The company was formerly known as Standard Life Aberdeen plc. abrdn plc was founded in 1825 and is headquartered in Edinburgh, United Kingdom.