Head to Head Review: The Phoenix Companies (PNX) vs. Torchmark Corporation (TMK)

The Phoenix Companies (NYSE: PNX) and Torchmark Corporation (NYSE:TMK) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Insider and Institutional Ownership

74.8% of Torchmark Corporation shares are held by institutional investors. 3.8% of Torchmark Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares The Phoenix Companies and Torchmark Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
The Phoenix Companies N/A N/A N/A N/A N/A
Torchmark Corporation $4.02 billion 2.22 $864.53 million $4.66 16.44

Torchmark Corporation has higher revenue and earnings than The Phoenix Companies.

Dividends

Torchmark Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. The Phoenix Companies does not pay a dividend. Torchmark Corporation pays out 12.9% of its earnings in the form of a dividend. The Phoenix Companies has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations for The Phoenix Companies and Torchmark Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Phoenix Companies 0 0 0 0 N/A
Torchmark Corporation 4 3 0 0 1.43

Torchmark Corporation has a consensus target price of $70.40, indicating a potential downside of 8.11%. Given Torchmark Corporation’s higher possible upside, analysts clearly believe Torchmark Corporation is more favorable than The Phoenix Companies.

Profitability

This table compares The Phoenix Companies and Torchmark Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Phoenix Companies -10.34% -121.92% -0.83%
Torchmark Corporation 13.96% 11.55% 2.55%

Summary

Torchmark Corporation beats The Phoenix Companies on 8 of the 10 factors compared between the two stocks.

About The Phoenix Companies

The Phoenix Companies, Inc. (Phoenix) is a holding company. The Company’s operating subsidiaries provide life insurance and annuity products through independent agents and financial advisors. Phoenix operates through two segments: Life and Annuity, and Saybrus. The Life and Annuity segment includes individual life insurance and annuity products, including its closed block. The Saybrus segment provides dedicated life insurance and other consulting services to financial advisors in partner companies, as well as support for sales of Phoenix’s product line through independent distribution organizations. Its Annuities products include Fixed Indexed Annuities, Fixed Annuities, Single Premium Immediate Annuities and Variable Annuities. Its Life Insurance products include Whole Life, Universal Life, Indexed Universal Life, Variable Universal Life and Term. Its target markets consist of middle market, and mass affluent families and individuals planning for or living in retirement.

About Torchmark Corporation

Torchmark Corporation (Torchmark) is an insurance holding company. The Company, through its subsidiaries, provides a range of life and health insurance products and annuities to a base of customers. The Company’s segments include life insurance, health insurance, annuities and investment. The life insurance segment includes traditional and interest-sensitive whole life insurance as well as term life insurance. The Health insurance products are guaranteed-renewable and include Medicare Supplement, critical illness, accident and limited-benefit supplemental hospital and surgical coverage’s. Annuities include fixed-benefit contracts. The Company markets its insurance products through various distribution channels, each of which sells the products of its insurance segments. Its subsidiaries include American Income Life Insurance Company (American Income) and Liberty National Life Insurance Company (Liberty National).

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