Reviewing Globe Life (NYSE:GL) & Trupanion (NASDAQ:TRUP)

Trupanion (NASDAQ:TRUPGet Free Report) and Globe Life (NYSE:GLGet Free Report) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Risk & Volatility

Trupanion has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Globe Life has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Profitability

This table compares Trupanion and Globe Life’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trupanion -0.32% -1.33% -0.52%
Globe Life 18.33% 21.44% 3.79%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Trupanion and Globe Life, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trupanion 0 2 4 1 2.86
Globe Life 0 4 6 1 2.73

Trupanion presently has a consensus target price of $51.80, suggesting a potential downside of 5.32%. Globe Life has a consensus target price of $137.73, suggesting a potential upside of 15.13%. Given Globe Life’s higher probable upside, analysts clearly believe Globe Life is more favorable than Trupanion.

Insider & Institutional Ownership

81.6% of Globe Life shares are held by institutional investors. 5.4% of Trupanion shares are held by company insiders. Comparatively, 1.5% of Globe Life shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Trupanion and Globe Life”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trupanion $1.29 billion 1.82 -$9.63 million ($0.10) -547.10
Globe Life $5.78 billion 1.71 $1.07 billion $12.29 9.73

Globe Life has higher revenue and earnings than Trupanion. Trupanion is trading at a lower price-to-earnings ratio than Globe Life, indicating that it is currently the more affordable of the two stocks.

Summary

Globe Life beats Trupanion on 10 of the 14 factors compared between the two stocks.

About Trupanion

(Get Free Report)

Trupanion, Inc., together with its subsidiaries, provides medical insurance for cats and dogs on a monthly subscription basis in the United States, Canada, Continental Europe, and Australia. The company operates in two segments, Subscription Business and Other Business. It serves pet owners and veterinarians. The company was formerly known as Vetinsurance International, Inc. changed its name to Trupanion, Inc. in 2013. Trupanion, Inc. was founded in 2000 and is headquartered in Seattle, Washington.

About Globe Life

(Get Free Report)

Globe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle- and middle-income families in the United States. The company operates in four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. It offers whole, term, and other life insurance products; Medicare supplement and supplemental health insurance products, such as accident, cancer, critical illness, heart, and intensive care plans; and single-premium and flexible-premium deferred annuities. The company sells its products through its direct to consumer division, exclusive agencies, and independent agents. The company was formerly known as Torchmark Corporation and changed its name to Globe Life Inc. in August 2019. Globe Life Inc. was founded in 1900 and is headquartered in McKinney, Texas.

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