Financial Analysis: Midwest (NASDAQ:MDWT) & Globe Life (NYSE:GL)

Midwest (NASDAQ:MDWT) and Globe Life (NYSE:GL) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Valuation & Earnings

This table compares Midwest and Globe Life’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Midwest $10.58 million 13.92 -$12.44 million ($4.42) -8.91
Globe Life $4.74 billion 1.93 $731.77 million N/A N/A

Globe Life has higher revenue and earnings than Midwest.

Profitability

This table compares Midwest and Globe Life’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Midwest N/A -20.88% -1.87%
Globe Life 15.55% 8.66% 2.52%

Insider and Institutional Ownership

31.0% of Midwest shares are held by institutional investors. Comparatively, 73.9% of Globe Life shares are held by institutional investors. 30.3% of Midwest shares are held by company insiders. Comparatively, 4.3% of Globe Life shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Midwest and Globe Life, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Midwest 0 1 1 0 2.50
Globe Life 1 1 2 0 2.25

Midwest currently has a consensus price target of $70.00, suggesting a potential upside of 77.66%. Globe Life has a consensus price target of $110.75, suggesting a potential upside of 23.43%. Given Midwest’s stronger consensus rating and higher possible upside, equities analysts plainly believe Midwest is more favorable than Globe Life.

Summary

Globe Life beats Midwest on 8 of the 12 factors compared between the two stocks.

Midwest Company Profile

Midwest Holding, Inc. engages in the provision of insurance services. It offers underwriting and marketing of life insurance and annuity products. The company was founded by Rick D. Meyer and Travis R. Meyer on October 31, 2003 and is headquartered in Lincoln, NE.

Globe Life Company Profile

Globe Life, Inc. is a holding company, which engages in the provision of individual life and supplemental health insurance products and services. It operates through the following segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. The Life Insurance segment includes traditional and interest-sensitive whole life insurance as well as term life insurances. The Supplement Health Insurance segment provides generally guaranteed-renewable and include medicare supplement, critical illness, accident, and limited-benefit supplemental hospital, and surgical coverage. The Annuities segment refers to fixed-benefit contracts. The Investments segment covers the investment portfolio. The company was founded on November 19, 1979 and is headquartered in McKinney, TX.

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