Globe Life (NYSE:GL) and SONY FINL HOLDI/ADR (OTCMKTS:SNYFY) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Insider & Institutional Ownership
75.4% of Globe Life shares are held by institutional investors. 3.6% of Globe Life shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for Globe Life and SONY FINL HOLDI/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SONY FINL HOLDI/ADR||0||0||0||0||N/A|
Globe Life presently has a consensus target price of $99.00, indicating a potential upside of 4.52%. Given Globe Life’s higher possible upside, equities analysts clearly believe Globe Life is more favorable than SONY FINL HOLDI/ADR.
This table compares Globe Life and SONY FINL HOLDI/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SONY FINL HOLDI/ADR||4.06%||10.35%||0.50%|
Risk and Volatility
Globe Life has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, SONY FINL HOLDI/ADR has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Globe Life pays an annual dividend of $0.69 per share and has a dividend yield of 0.7%. SONY FINL HOLDI/ADR pays an annual dividend of $1.04 per share and has a dividend yield of 5.0%. Globe Life pays out 11.3% of its earnings in the form of a dividend. SONY FINL HOLDI/ADR pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings and Valuation
This table compares Globe Life and SONY FINL HOLDI/ADR’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Globe Life||$4.30 billion||2.40||$701.47 million||$6.13||15.45|
|SONY FINL HOLDI/ADR||$14.79 billion||0.62||$558.67 million||$1.30||16.15|
Globe Life has higher earnings, but lower revenue than SONY FINL HOLDI/ADR. Globe Life is trading at a lower price-to-earnings ratio than SONY FINL HOLDI/ADR, indicating that it is currently the more affordable of the two stocks.
Globe Life beats SONY FINL HOLDI/ADR on 12 of the 15 factors compared between the two stocks.
About Globe Life
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.
About SONY FINL HOLDI/ADR
Sony Financial Holdings Inc., together with its subsidiaries, provides financial services in Japan and internationally. The company operates in life insurance, non-life insurance, and banking businesses. Its insurance products include death-protection, medical, educational endowment, living benefit, and other insurance products; and non-life insurance products comprise automobile, medical, and cancer insurance products, as well as reinsurance services. The company's banking business provides Yen and foreign currency deposits, and mortgage loans, as well as investment trust, foreign currency margin trading, and other services; and credit card settlement services, as well as plans, develops, and operates nursing care homes. It provides its products through lifeplanner sales employees and independent agencies, as well as through Internet and telephone. The company was founded in 1979 and is headquartered in Tokyo, Japan. Sony Financial Holdings Inc. is a subsidiary of Sony Corporation.
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