Contrasting Globe Life (GL) and Its Peers

Globe Life (NYSE: GL) is one of 40 public companies in the “Life insurance” industry, but how does it compare to its peers? We will compare Globe Life to related companies based on the strength of its analyst recommendations, profitability, institutional ownership, dividends, earnings, risk and valuation.

Dividends

Globe Life pays an annual dividend of $0.69 per share and has a dividend yield of 0.7%. 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 1.8% and pay out 18.4% of their earnings in the form of a dividend.



Profitability

This table compares Globe Life and its peers’ 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 8.49% 8.39% 1.00%

Analyst Ratings

This is a summary of recent recommendations and price targets for Globe Life and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globe Life 0 0 0 0 N/A
Globe Life Competitors 539 1540 1790 103 2.37

As a group, “Life insurance” companies have a potential upside of 10.22%. Given Globe Life’s peers higher probable upside, analysts plainly believe Globe Life has less favorable growth aspects than its peers.

Institutional & Insider Ownership

75.6% of Globe Life shares are owned by institutional investors. Comparatively, 57.9% of shares of all “Life insurance” companies are owned by institutional investors. 3.6% of Globe Life shares are owned by company insiders. Comparatively, 10.1% of shares of all “Life insurance” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Globe Life has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Globe Life’s peers have a beta of 0.93, indicating that their average share price is 7% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Globe Life $4.30 billion $701.47 million 15.31
Globe Life Competitors $18.20 billion $1.03 billion 13.16

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

Summary

Globe Life beats its peers 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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