Torchmark (NYSE:TMK) and National Security Group (NASDAQ:NSEC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Torchmark pays an annual dividend of $0.69 per share and has a dividend yield of 0.8%. National Security Group pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Torchmark pays out 11.3% of its earnings in the form of a dividend. Torchmark has raised its dividend for 9 consecutive years.
Earnings & Valuation
This table compares Torchmark and National Security Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Torchmark||$4.30 billion||2.23||$701.47 million||$6.13||14.22|
|National Security Group||$64.86 million||0.45||$780,000.00||N/A||N/A|
Torchmark has higher revenue and earnings than National Security Group.
Volatility & Risk
Torchmark has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, National Security Group has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500.
Insider & Institutional Ownership
76.7% of Torchmark shares are owned by institutional investors. Comparatively, 2.6% of National Security Group shares are owned by institutional investors. 3.6% of Torchmark shares are owned by insiders. Comparatively, 38.2% of National Security Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Torchmark and National Security Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Security Group||0||0||0||0||N/A|
Torchmark currently has a consensus target price of $81.67, indicating a potential downside of 6.28%. Given Torchmark’s higher probable upside, equities research analysts plainly believe Torchmark is more favorable than National Security Group.
This table compares Torchmark 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||1.20%||1.68%||0.53%|
Torchmark beats National Security Group on 11 of the 15 factors compared between the two stocks.
Torchmark Corporation, through its subsidiaries, provides various life and health insurance products, and annuities in the United States, Canada, and New Zealand. It operates through four segments: Life Insurance, Health Insurance, Annuity, and Investment. The company offers traditional and interest-sensitive whole life insurance, as well as term life insurance. It also provides health insurance product, including Medicare Supplement, critical illness, accident, and limited-benefit supplemental hospital and surgical coverage; and annuities, such as single-premium and flexible-premium deferred annuities. The company sells its products through sales by direct response, exclusive agents, and independent agents, as well as through direct mail, electronic media, and insert media. Torchmark Corporation was founded in 1900 and is headquartered 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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