Torchmark (TMK) vs. Security National Financial (SNFCA) Critical Survey
Torchmark (NYSE: TMK) and Security National Financial (NASDAQ:SNFCA) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.
Torchmark pays an annual dividend of $0.60 per share and has a dividend yield of 0.7%. Security National Financial does not pay a dividend. Torchmark pays out 12.8% of its earnings in the form of a dividend. Torchmark has increased its dividend for 8 consecutive years.
Torchmark has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Security National Financial has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Torchmark and Security National Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Security National Financial||0||0||0||0||N/A|
Torchmark presently has a consensus target price of $77.40, indicating a potential downside of 16.10%. Given Torchmark’s higher probable upside, equities analysts plainly believe Torchmark is more favorable than Security National Financial.
Valuation & Earnings
This table compares Torchmark and Security National Financial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Torchmark||$3.94 billion||2.71||$549.77 million||$4.70||19.63|
|Security National Financial||$307.21 million||0.25||$12.18 million||$0.32||14.53|
Torchmark has higher revenue and earnings than Security National Financial. Security National Financial is trading at a lower price-to-earnings ratio than Torchmark, indicating that it is currently the more affordable of the two stocks.
This table compares Torchmark and Security National Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Security National Financial||2.37%||5.03%||0.70%|
Insider & Institutional Ownership
72.5% of Torchmark shares are held by institutional investors. Comparatively, 8.5% of Security National Financial shares are held by institutional investors. 3.8% of Torchmark shares are held by insiders. Comparatively, 18.2% of Security National Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Torchmark beats Security National Financial on 13 of the 15 factors compared between the two stocks.
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).
Security National Financial Company Profile
Security National Financial Corporation is a holding company. The Company operates through three segments: life insurance, cemetery and mortuary, and mortgage loans. The life insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products, and accident and health insurance. The cemetery and mortuary segment consists of approximately seven mortuaries and five cemeteries in the state of Utah and a cemetery in the state of California. The mortgage loan segment originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes and real estate projects. The Company is also engaged in pre-need selling of funeral, cemetery, mortuary and cremation services through its Utah and California operations. It also sells pre-need funeral, cemetery and cremation services.
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