Globe Life (GL) versus The Competition Financial Survey

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Globe Life (NYSE: GL) is one of 39 publicly-traded companies in the “Life insurance” industry, but how does it contrast to its rivals? We will compare Globe Life to related businesses based on the strength of its institutional ownership, risk, profitability, dividends, earnings, analyst recommendations and valuation.

Profitability

This table compares Globe Life and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Globe Life 16.26% 12.34% 3.06%
Globe Life Competitors 8.44% 8.30% 0.99%

Dividends

Globe Life pays an annual dividend of $0.69 per share and has a dividend yield of 0.8%. Globe Life pays out 11.3% of its earnings in the form of a dividend. As a group, “Life insurance” companies pay a dividend yield of 2.0% and pay out 17.7% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Globe Life and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Globe Life $4.30 billion $701.47 million 14.05
Globe Life Competitors $18.20 billion $1.03 billion 12.33

Globe Life’s rivals have higher revenue and earnings than Globe Life. Globe Life is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Globe Life has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Globe Life’s rivals have a beta of 0.92, indicating that their average stock price is 8% less volatile than the S&P 500.

Institutional and Insider Ownership

75.5% of Globe Life shares are held by institutional investors. Comparatively, 58.2% of shares of all “Life insurance” companies are held by institutional investors. 3.6% of Globe Life shares are held by insiders. Comparatively, 10.1% of shares of all “Life insurance” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Globe Life and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globe Life 0 0 0 0 N/A
Globe Life Competitors 529 1525 1777 102 2.37

As a group, “Life insurance” companies have a potential upside of 33.98%. Given Globe Life’s rivals higher possible upside, analysts plainly believe Globe Life has less favorable growth aspects than its rivals.

Summary

Globe Life beats its rivals on 7 of the 12 factors compared.

Globe Life Company Profile

Globe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle to middle income households in the United States. The company operates through four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. It offers term life, whole life, children's life, senior life, and family life insurance products; accidental benefits insurance; mortgage protection insurance; and medicare supplement plans. The company was formerly known as Torchmark Corporation and changed its name to Globe Life Inc. in August 2019. Globe Life Inc. is based in McKinney, Texas.

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