Financial Contrast: Torchmark (TMK) vs. Scor (SCRYY)

Torchmark (NYSE: TMK) and Scor (OTCMKTS:SCRYY) are both mid-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Risk and Volatility

Torchmark has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Scor has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Torchmark and Scor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Torchmark 4 3 1 0 1.63
Scor 1 3 1 0 2.00

Torchmark presently has a consensus target price of $82.25, indicating a potential downside of 0.05%. Given Torchmark’s higher possible upside, research analysts clearly believe Torchmark is more favorable than Scor.

Earnings and Valuation

This table compares Torchmark and Scor’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Torchmark $4.16 billion 2.25 $1.45 billion $4.82 17.07
Scor $15.00 billion 0.48 $323.26 million $0.17 21.71

Torchmark has higher earnings, but lower revenue than Scor. Torchmark is trading at a lower price-to-earnings ratio than Scor, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Torchmark and Scor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Torchmark 35.56% 10.88% 2.63%
Scor 2.32% 5.17% 0.75%

Dividends

Torchmark pays an annual dividend of $0.64 per share and has a dividend yield of 0.8%. Scor pays an annual dividend of $0.15 per share and has a dividend yield of 4.1%. Torchmark pays out 13.3% of its earnings in the form of a dividend. Scor pays out 88.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Torchmark has raised its dividend for 8 consecutive years.

Institutional & Insider Ownership

73.6% of Torchmark shares are owned by institutional investors. Comparatively, 0.4% of Scor shares are owned by institutional investors. 3.7% of Torchmark shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Torchmark beats Scor on 12 of the 16 factors compared between the two stocks.

About Torchmark

Torchmark Corporation, through its subsidiaries, provides various life and health insurance products, and annuities in the United States, Canada, and New Zealand. It operates through four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. The Life Insurance segment offers traditional and interest-sensitive whole life and term life insurance, and other life insurance. The Supplemental Health Insurance segment provides health insurance products comprising Medicare Supplements, critical illness, accident, and limited-benefit supplemental hospital and surgical coverages. The Annuities segment provides single-premium and flexible-premium deferred annuities. The company sells its products through sales by direct response, exclusive agents, and independent agents, as well as through direct mail, electronic media, and insert media. Torchmark Corporation was founded in 1900 and is headquartered in McKinney, Texas.

About Scor

SCOR SE provides life and non-life reinsurance products worldwide. It operates through SCOR Global P&C and SCOR Global Life segments. The SCOR Global P&C segment offers reinsurance products in the areas of property and casualty treaties; specialty treaties, including credit and surety, decennial insurance, aviation, space, marine, engineering, agriculture risks, and alternative solutions; business solutions; business ventures and partnerships; and direct insurance products on a business-to-business basis. The SCOR Global Life segment provides life reinsurance products, including protection for mortality, morbidity, behavioral risks, disability, long-term care, critical illness, medical, and personal accident. This segment also provides financial solutions that combine traditional life reinsurance with financial components and provide liquidity, balance sheet, solvency, and income improvements to clients; longevity solutions that include products covering the risk of negative deviation from expected results due to the insured or annuitant living longer than assumed in the pricing of insurance covers provided by insurers or pension funds; and distribution solutions. In addition, the company is involved in the asset management business. SCOR SE was founded in 1970 and is headquartered in Paris, France.

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