Head to Head Survey: Abrdn (OTCMKTS:SLFPY) vs. XP (NASDAQ:XP)

Abrdn (OTCMKTS:SLFPY) and XP (NASDAQ:XP) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Abrdn and XP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abrdn	0	2	0	0	2.00
XP	0	3	5	1	2.78

XP has a consensus target price of $22.86, suggesting a potential upside of 8.23%. Given XP’s stronger consensus rating and higher probable upside, analysts clearly believe XP is more favorable than Abrdn.

Institutional and Insider Ownership

59.2% of XP shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Abrdn pays an annual dividend of $0.64 per share and has a dividend yield of 5.8%. XP pays an annual dividend of $0.18 per share and has a dividend yield of 0.9%. XP pays out 10.4% of its earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Abrdn	N/A	N/A	N/A
XP	27.51%	23.08%	1.37%

Volatility & Risk

Abrdn has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, XP has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Valuation and Earnings

This table compares Abrdn and XP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abrdn	$1.68 billion	3.03	$526.16 million	N/A	N/A
XP	$3.30 billion	3.44	$925.91 million	$1.73	12.21

XP has higher revenue and earnings than Abrdn.

Summary

XP beats Abrdn on 11 of the 14 factors compared between the two stocks.

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.

About XP

XP Inc. provides financial products and services in Brazil. It offers securities brokerage, private pension plans, commercial, and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth customers and institutional clients. The company also offers XP Educação, an online financial education portal that offers seminars, classes, and learning tools to help teach individuals on topics, such as basics of investing, techniques, and investment strategies, as well as insurance brokerage services. In addition, it operates XP Platform, an open product platform that provides clients to access investment products in the market, including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds, and others. The company was founded in 2001 and is based in São Paulo, Brazil.