Comparing Globe Life (NYSE:GL) & China Life Insurance (NYSE:LFC)

Globe Life (NYSE:GL) and China Life Insurance (NYSE:LFC) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Globe Life and China Life Insurance, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globe Life 1 1 2 0 2.25
China Life Insurance 0 0 0 0 N/A

Globe Life presently has a consensus target price of $105.00, indicating a potential downside of 1.34%. Given Globe Life’s higher possible upside, analysts plainly believe Globe Life is more favorable than China Life Insurance.

Institutional & Insider Ownership

72.5% of Globe Life shares are held by institutional investors. Comparatively, 0.2% of China Life Insurance shares are held by institutional investors. 3.8% of Globe Life shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Globe Life has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, China Life Insurance has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Valuation and Earnings

This table compares Globe Life and China Life Insurance’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Globe Life $4.53 billion 2.42 $760.79 million N/A N/A
China Life Insurance $105.55 billion 0.56 $8.43 billion $1.48 7.01

China Life Insurance has higher revenue and earnings than Globe Life.

Profitability

This table compares Globe Life and China Life Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Globe Life 15.38% 10.28% 2.82%
China Life Insurance 5.94% 11.22% 1.20%

Dividends

Globe Life pays an annual dividend of $0.79 per share and has a dividend yield of 0.7%. China Life Insurance pays an annual dividend of $0.44 per share and has a dividend yield of 4.2%. China Life Insurance pays out 29.7% of its earnings in the form of a dividend. Globe Life has raised its dividend for 1 consecutive years.

Summary

Globe Life beats China Life Insurance on 10 of the 15 factors compared between the two stocks.

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 whole life, term life, and other life insurance products; Medicare supplement and supplemental health insurance, such as critical illness and accident plans; and single-premium and flexible-premium deferred annuities. The company was formerly known as Torchmark Corporation and changed its name to Globe Life Inc. in August 2019. Globe Life Inc. was incorporated in 1979 and is headquartered in McKinney, Texas.

China Life Insurance Company Profile

China Life Insurance Company Limited, together with its subsidiaries, operates as a life insurance company in the People's Republic of China. It operates in four segments: Life Insurance Business, Health Insurance Business, Accident Insurance Business, and Other Businesses. The company offers individual and group life, annuity products, accident, and health insurance products. It is also involved in the third-party asset management, annuity funds, fund management, investment management, pension security, occupational pension, reinsurance, and health management businesses. China Life Insurance Company Limited sells its products through agents, direct sales representatives, and dedicated and non-dedicated agencies. The company was founded in 1949 and is based in Beijing, the People's Republic of China. China Life Insurance Company Limited is a subsidiary of China Life Insurance (Group) Company Limited.

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