Financial Comparison: Torchmark (TMK) vs. OLD Mut PLC/ADR (ODMTY)

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Torchmark (OTCMKTS: ODMTY) and OLD Mut PLC/ADR (OTCMKTS:ODMTY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Torchmark and OLD Mut PLC/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Torchmark 3 3 1 0 1.71
OLD Mut PLC/ADR 0 0 0 0 N/A

Torchmark presently has a consensus price target of $84.29, suggesting a potential downside of 4.60%. Given Torchmark’s higher probable upside, analysts clearly believe Torchmark is more favorable than OLD Mut PLC/ADR.

Dividends

Torchmark pays an annual dividend of $0.64 per share and has a dividend yield of 0.7%. OLD Mut PLC/ADR pays an annual dividend of $0.69 per share and has a dividend yield of 3.2%. Torchmark pays out 13.3% of its earnings in the form of a dividend. Torchmark has raised its dividend for 8 consecutive years.

Volatility & Risk

Torchmark has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, OLD Mut PLC/ADR has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Earnings and Valuation

This table compares Torchmark and OLD Mut PLC/ADR’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Torchmark $4.16 billion 2.40 $1.45 billion $4.82 18.33
OLD Mut PLC/ADR $13.35 billion 1.01 $1.17 billion N/A N/A

Torchmark has higher earnings, but lower revenue than OLD Mut PLC/ADR.

Profitability

This table compares Torchmark and OLD Mut PLC/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Torchmark 36.13% 11.23% 2.77%
OLD Mut PLC/ADR N/A N/A N/A

Insider and Institutional Ownership

74.0% of Torchmark shares are owned by institutional investors. 3.7% of Torchmark shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Torchmark beats OLD Mut PLC/ADR on 10 of the 14 factors compared between the two stocks.

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, Supplemental Health Insurance, Annuities, and Investments. The Life Insurance segment offers traditional and interest-sensitive whole life and term life insurance, and other life insurance. The Supplemental Health Insurance segment provides health insurance products comprising Medicare Supplements, critical illness, accident, and limited-benefit supplemental hospital and surgical coverages. The Annuities segment provides 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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