AMERISAFE (NASDAQ:AMSF) vs. Globe Life (NYSE:GL) Head-To-Head Contrast

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

Institutional & Insider Ownership

97.4% of AMERISAFE shares are owned by institutional investors. Comparatively, 81.6% of Globe Life shares are owned by institutional investors. 1.6% of AMERISAFE shares are owned by company insiders. Comparatively, 1.5% of Globe Life shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

AMERISAFE has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Globe Life has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AMERISAFE	15.76%	16.41%	3.87%
Globe Life	18.33%	21.44%	3.79%

Dividends

AMERISAFE pays an annual dividend of $1.56 per share and has a dividend yield of 3.6%. Globe Life pays an annual dividend of $1.08 per share and has a dividend yield of 0.9%. AMERISAFE pays out 62.9% of its earnings in the form of a dividend. Globe Life pays out 8.8% 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. AMERISAFE has raised its dividend for 12 consecutive years and Globe Life has raised its dividend for 20 consecutive years.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMERISAFE	0	1	1	0	2.50
Globe Life	0	4	6	1	2.73

AMERISAFE currently has a consensus target price of $59.50, indicating a potential upside of 35.63%. Globe Life has a consensus target price of $137.73, indicating a potential upside of 11.10%. Given AMERISAFE’s higher probable upside, equities analysts clearly believe AMERISAFE is more favorable than Globe Life.

Earnings and Valuation

This table compares AMERISAFE and Globe Life”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMERISAFE	$309.04 million	2.70	$55.44 million	$2.48	17.69
Globe Life	$5.78 billion	1.77	$1.07 billion	$12.29	10.09

Globe Life has higher revenue and earnings than AMERISAFE. Globe Life is trading at a lower price-to-earnings ratio than AMERISAFE, indicating that it is currently the more affordable of the two stocks.

Summary

Globe Life beats AMERISAFE on 11 of the 18 factors compared between the two stocks.

About AMERISAFE

AMERISAFE, Inc., an insurance holding company, underwrites workers’ compensation insurance in the United States. The company provides benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. It sells its products through retail and wholesale brokers and agents; and small and mid-sized employers engaged in hazardous industries, including construction, trucking, logging and lumber, agriculture, manufacturing, telecommunications, and maritime. AMERISAFE, Inc. was incorporated in 1985 and is based in DeRidder, Louisiana.

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.