Globe Life (GL) & Its Rivals Critical Review

Globe Life (NYSE:GL) is one of 311 publicly-traded companies in the “Insurance” industry, but how does it compare to its rivals? We will compare Globe Life to similar companies based on the strength of its valuation, analyst recommendations, profitability, risk, institutional ownership, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Globe Life and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globe Life	0	3	7	2	2.92
Globe Life Competitors	3347	15712	16557	747	2.40

Globe Life presently has a consensus target price of $183.91, suggesting a potential upside of 14.85%. As a group, “Insurance” companies have a potential upside of 4.55%. Given Globe Life’s stronger consensus rating and higher probable upside, research analysts clearly believe Globe Life is more favorable than its rivals.

Earnings & Valuation

This table compares Globe Life and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Globe Life	$5.99 billion	$1.16 billion	10.71
Globe Life Competitors	$15.27 billion	$1.70 billion	33.61

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

Dividends

Globe Life pays an annual dividend of $1.32 per share and has a dividend yield of 0.8%. Globe Life pays out 8.8% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 31.1% of their earnings in the form of a dividend. Globe Life has raised its dividend for 20 consecutive years.

Institutional and Insider Ownership

81.6% of Globe Life shares are owned by institutional investors. Comparatively, 55.9% of shares of all “Insurance” companies are owned by institutional investors. 2.1% of Globe Life shares are owned by insiders. Comparatively, 13.4% of shares of all “Insurance” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Globe Life has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Globe Life’s rivals have a beta of -1.59, suggesting that their average share price is 259% less volatile than the S&P 500.

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	18.89%	19.51%	3.91%
Globe Life Competitors	8.64%	-9.90%	4.10%

Summary

Globe Life beats its rivals on 9 of the 15 factors compared.

Globe Life Company Profile

Globe Life Inc. is a U.S.-based insurance holding company that provides life and supplemental health insurance through its subsidiaries. Its products include term and whole life insurance, Medicare Supplement insurance, and supplemental health coverage such as accident, cancer, and critical illness policies. The company distributes insurance through a mix of exclusive agents, independent agents, and direct marketing. Its operating companies include Globe Life and Accident Insurance Company, American Income Life, Liberty National, Family Heritage Life, and United American.