Head-To-Head Analysis: Globe Life (NYSE:GL) & Employers (NYSE:EIG)

Globe Life (NYSE:GL) and Employers (NYSE:EIG) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globe Life	$5.78 billion	1.93	$1.07 billion	$12.51	10.81
Employers	$880.70 million	1.25	$118.60 million	$4.12	11.14

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

Volatility & Risk

Globe Life has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Employers has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Insider & Institutional Ownership

81.6% of Globe Life shares are held by institutional investors. Comparatively, 80.5% of Employers shares are held by institutional investors. 1.5% of Globe Life shares are held by insiders. Comparatively, 1.4% of Employers shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Globe Life	18.11%	21.55%	3.75%
Employers	11.99%	9.21%	2.75%

Analyst Ratings

This is a breakdown of current ratings and price targets for Globe Life and Employers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globe Life	0	3	7	1	2.82
Employers	0	1	1	0	2.50

Globe Life presently has a consensus target price of $145.09, indicating a potential upside of 7.30%. Employers has a consensus target price of $58.00, indicating a potential upside of 26.31%. Given Employers’ higher possible upside, analysts plainly believe Employers is more favorable than Globe Life.

Dividends

Globe Life pays an annual dividend of $1.08 per share and has a dividend yield of 0.8%. Employers pays an annual dividend of $1.28 per share and has a dividend yield of 2.8%. Globe Life pays out 8.6% of its earnings in the form of a dividend. Employers pays out 31.1% 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 Employers has increased its dividend for 4 consecutive years.

Summary

Globe Life beats Employers on 15 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 Employers

Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. The company operates in two segments, Employers and Cerity. It offers workers’ compensation insurance to small businesses in low to medium hazard industries under the Employers and Cerity brands. The company markets its products through local, regional, and national agents and brokers; alternative distribution channels; and national, regional, and local trade groups and associations, as well as directly to customers. Employers Holdings, Inc. was founded in 2000 and is based in Henderson, Nevada.