Head-To-Head Analysis: National Security Group (NSEC) vs. Torchmark (TMK)

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

Analyst Ratings

This is a breakdown of recent ratings for National Security Group and Torchmark, 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 2 1 1 0 1.75

Torchmark has a consensus price target of $81.67, indicating a potential downside of 7.33%. Given Torchmark’s higher probable upside, analysts plainly believe Torchmark is more favorable than National Security Group.

Earnings and Valuation

This table compares National Security Group and Torchmark’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Security Group $64.86 million 0.47 $780,000.00 N/A N/A
Torchmark $4.30 billion 2.25 $701.47 million $6.13 14.38

Torchmark has higher revenue and earnings than National Security Group.

Profitability

This table compares National Security Group and Torchmark’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Security Group 4.11% 5.82% 1.87%
Torchmark 16.37% 12.75% 3.07%

Volatility & Risk

National Security Group has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, Torchmark has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Dividends

National Security Group pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Torchmark pays an annual dividend of $0.69 per share and has a dividend yield of 0.8%. Torchmark pays out 11.3% of its earnings in the form of a dividend. Torchmark has increased its dividend for 9 consecutive years.

Institutional & Insider Ownership

2.6% of National Security Group shares are owned by institutional investors. Comparatively, 76.6% of Torchmark shares are owned by institutional investors. 38.2% of National Security Group shares are owned by insiders. Comparatively, 3.6% of Torchmark shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

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

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.

About Torchmark

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.

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