Globe Life (NYSE:GL) and National Security Group (NASDAQ:NSEC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
This table compares Globe Life and National Security Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Security Group||1.86%||2.47%||0.82%|
Globe Life has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, National Security Group has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500.
This is a summary of current recommendations for Globe Life and National Security Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Security Group||0||0||0||0||N/A|
Globe Life presently has a consensus target price of $95.33, suggesting a potential downside of 3.93%. Given Globe Life’s higher probable upside, research analysts clearly believe Globe Life is more favorable than National Security Group.
Globe Life pays an annual dividend of $0.69 per share and has a dividend yield of 0.7%. National Security Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.9%. Globe Life pays out 11.3% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Globe Life and National Security Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Globe Life||$4.30 billion||2.50||$701.47 million||$6.13||16.19|
|National Security Group||$64.86 million||0.48||$780,000.00||N/A||N/A|
Globe Life has higher revenue and earnings than National Security Group.
Insider and Institutional Ownership
73.9% of Globe Life shares are owned by institutional investors. Comparatively, 3.0% of National Security Group shares are owned by institutional investors. 3.6% of Globe Life shares are owned by insiders. Comparatively, 38.2% of National Security Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Globe Life beats National Security Group on 10 of the 14 factors compared between the two stocks.
About Globe Life
Globe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle to middle income households in the United States. The company operates through four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. It offers term life, whole life, children's life, senior life, and family life insurance products; accidental benefits insurance; mortgage protection insurance; and medicare supplement plans. The company was formerly known as Torchmark Corporation and changed its name to Globe Life Inc. in August 2019. Globe Life Inc. is based in McKinney, Texas.
About National Security Group
The National Security Group, Inc., an insurance holding company, provides insurance products and services in the United States. The company operates in two segments, Property and Casualty Insurance, and Life Insurance. The Property and Casualty Insurance segment primarily underwrites home insurance coverage with primary lines of business consisting of dwelling fire and extended coverage, mobile homeowners, and other liability insurance services in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Oklahoma, South Carolina, Tennessee, and West Virginia, as well as operates on a surplus lines basis in the state of Louisiana. The Life Insurance segment offers ordinary life, accident and health, supplemental hospital, and cancer insurance products in Alabama, Florida, Georgia, Mississippi, South Carolina, Tennessee, and Texas. The company distributes its products through independent agents, home service agents, and brokers. The National Security Group, Inc. was founded in 1947 and is based in Elba, Alabama.
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