Torchmark (TMK) versus Its Rivals Critical Contrast
Torchmark (NYSE: TMK) is one of 38 publicly-traded companies in the “Life insurance” industry, but how does it contrast to its peers? We will compare Torchmark to similar businesses based on the strength of its earnings, valuation, profitability, dividends, institutional ownership, analyst recommendations and risk.
Insider & Institutional 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, large money managers and endowments believe a company is poised for long-term growth.
This table compares Torchmark and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Torchmark||$4.16 billion||$1.45 billion||17.83|
|Torchmark Competitors||$22.05 billion||$1.25 billion||16.10|
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.
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.
Risk and Volatility
Torchmark has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Torchmark’s peers have a beta of 1.06, suggesting that their average share price is 6% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Torchmark and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Torchmark currently has a consensus price target of $82.25, suggesting a potential downside of 4.27%. As a group, “Life insurance” companies have a potential upside of 9.67%. Given Torchmark’s peers stronger consensus rating and higher possible upside, analysts clearly believe Torchmark has less favorable growth aspects than its peers.
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 peers beat Torchmark on 8 of the 15 factors compared.
Torchmark Company Profile
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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