Globe Life (NYSE:GL – Get Free Report) and Stewart Information Services (NYSE:STC – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.
Profitability
This table compares Globe Life and Stewart Information Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Globe Life | 19.58% | 20.52% | 3.96% |
| Stewart Information Services | 4.12% | 10.02% | 5.12% |
Volatility & Risk
Globe Life has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Stewart Information Services has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Globe Life | $5.99 billion | 2.13 | $1.16 billion | $15.06 | 11.03 |
| Stewart Information Services | $2.92 billion | 0.53 | $115.54 million | $4.56 | 11.18 |
Globe Life has higher revenue and earnings than Stewart Information Services. Globe Life is trading at a lower price-to-earnings ratio than Stewart Information Services, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
81.6% of Globe Life shares are owned by institutional investors. Comparatively, 96.9% of Stewart Information Services shares are owned by institutional investors. 2.1% of Globe Life shares are owned by insiders. Comparatively, 2.9% of Stewart Information Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for Globe Life and Stewart Information Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Globe Life | 0 | 2 | 8 | 1 | 2.91 |
| Stewart Information Services | 0 | 3 | 4 | 0 | 2.57 |
Globe Life currently has a consensus target price of $190.22, suggesting a potential upside of 14.56%. Stewart Information Services has a consensus target price of $80.25, suggesting a potential upside of 57.37%. Given Stewart Information Services’ higher possible upside, analysts clearly believe Stewart Information Services is more favorable than Globe Life.
Dividends
Globe Life pays an annual dividend of $1.32 per share and has a dividend yield of 0.8%. Stewart Information Services pays an annual dividend of $2.20 per share and has a dividend yield of 4.3%. Globe Life pays out 8.8% of its earnings in the form of a dividend. Stewart Information Services pays out 48.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Globe Life has increased its dividend for 20 consecutive years and Stewart Information Services has increased its dividend for 4 consecutive years.
Summary
Globe Life beats Stewart Information Services on 11 of the 18 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- 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.
About Stewart Information Services
Stewart Information Services Corporation, through its subsidiaries, provides title insurance and real estate transaction related services in the United States and internationally. The company involves in searching, examining, closing, and insuring the condition of the title to real property. It also offers home and personal insurance services; services for tax-deferred exchanges; and digital customer engagement platform services. It also provides appraisal management, online notarization and closing, credit and real estate information, and search and valuation services. The company serves homebuyers and sellers, residential and commercial real estate professionals, mortgage lenders and servicers, title agencies and real estate attorneys, and home builders through direct operations, network of independent agencies, and other businesses. The company was founded in 1893 and is headquartered in Houston, Texas.
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