Head to Head Contrast: Torchmark (TMK) & The Competition

Torchmark (NYSE: TMK) is one of 38 public companies in the “Life insurance” industry, but how does it compare to its peers? We will compare Torchmark to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

Torchmark pays an annual dividend of $0.64 per share and has a dividend yield of 0.7%. Torchmark pays out 13.3% of its earnings in the form of a dividend. As a group, “Life insurance” companies pay a dividend yield of 2.1% and pay out 28.7% of their earnings in the form of a dividend. Torchmark has increased its dividend for 8 consecutive years.

Earnings & Valuation

This table compares Torchmark and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Torchmark $4.16 billion $1.45 billion 18.07
Torchmark Competitors $22.05 billion $1.25 billion 16.23

Torchmark’s peers have higher revenue, but lower earnings than Torchmark. Torchmark 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.

Risk & Volatility

Torchmark has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Torchmark’s peers have a beta of 1.07, indicating that their average share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Torchmark and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Torchmark 4 3 1 0 1.63
Torchmark Competitors 318 1128 1517 83 2.45

Torchmark currently has a consensus price target of $82.25, suggesting a potential downside of 5.56%. As a group, “Life insurance” companies have a potential upside of 8.91%. Given Torchmark’s peers stronger consensus rating and higher probable upside, analysts plainly believe Torchmark has less favorable growth aspects than its peers.

Profitability

This table compares Torchmark and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Torchmark 34.99% 10.81% 2.52%
Torchmark Competitors 4.44% 4.85% 0.81%

Institutional and Insider Ownership

74.8% of Torchmark shares are held by institutional investors. Comparatively, 49.3% of shares of all “Life insurance” companies are held by institutional investors. 3.7% of Torchmark shares are held by insiders. Comparatively, 18.8% of shares of all “Life insurance” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Torchmark peers beat Torchmark on 8 of the 15 factors compared.

About Torchmark

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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