Analyzing Security National Financial (SNFCA) and Torchmark (TMK)

Security National Financial (NASDAQ: SNFCA) and Torchmark (NYSE:TMK) are both financials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Valuation & Earnings

This table compares Security National Financial and Torchmark’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Security National Financial $307.21 million 0.25 $12.18 million $0.32 14.53
Torchmark $3.94 billion 2.71 $549.77 million $4.70 19.63

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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Security National Financial and Torchmark, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Security National Financial 0 0 0 0 N/A
Torchmark 1 4 0 0 1.80

Torchmark has a consensus price target of $77.40, indicating a potential downside of 16.10%. Given Torchmark’s higher probable upside, analysts plainly believe Torchmark is more favorable than Security National Financial.

Profitability

This table compares Security National Financial and Torchmark’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%
Torchmark 13.80% 11.60% 2.54%

Risk & Volatility

Security National Financial has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Torchmark has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Institutional & Insider Ownership

8.5% of Security National Financial shares are owned by institutional investors. Comparatively, 72.5% of Torchmark shares are owned by institutional investors. 18.2% of Security National Financial shares are owned by company insiders. Comparatively, 3.8% of Torchmark shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

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. Security National Financial has raised its dividend for 8 consecutive years.

Summary

Torchmark beats Security National Financial on 12 of the 15 factors compared between the two stocks.

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.

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).

Receive News & Ratings for Security National Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Security National Financial and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit