Globe Life (NYSE:GL – Get Free Report) and eHealth (NASDAQ:EHTH – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Institutional & Insider Ownership
81.6% of Globe Life shares are held by institutional investors. Comparatively, 79.5% of eHealth shares are held by institutional investors. 2.1% of Globe Life shares are held by insiders. Comparatively, 7.2% of eHealth shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Globe Life has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, eHealth has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Globe Life | 0 | 2 | 8 | 1 | 2.91 |
| eHealth | 1 | 5 | 0 | 0 | 1.83 |
Globe Life presently has a consensus target price of $190.22, suggesting a potential upside of 15.65%. eHealth has a consensus target price of $2.19, suggesting a potential upside of 242.33%. Given eHealth’s higher possible upside, analysts clearly believe eHealth is more favorable than Globe Life.
Profitability
This table compares Globe Life and eHealth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Globe Life | 19.58% | 20.52% | 3.96% |
| eHealth | 5.42% | 6.13% | 2.92% |
Earnings & Valuation
This table compares Globe Life and eHealth”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Globe Life | $5.99 billion | 2.11 | $1.16 billion | $15.06 | 10.92 |
| eHealth | $554.01 million | 0.04 | $40.04 million | ($1.16) | -0.55 |
Globe Life has higher revenue and earnings than eHealth. eHealth is trading at a lower price-to-earnings ratio than Globe Life, indicating that it is currently the more affordable of the two stocks.
Summary
Globe Life beats eHealth on 12 of the 15 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 eHealth
eHealth, Inc. operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States. The company operates in two segments, Medicare; and Employer and Individual. The Medicare segment offers sale of Medicare-related health insurance plans, which includes Medicare advantage, Medicare Supplement, and Medicare Part D prescription drug plans to Medicare-eligible customers including but not limited to, dental, and vision insurance, as well as advertising program for marketing and other services. The Employer and Individual segment engages in the sale of individual, family, and small business health insurance plans; and ancillary products to non-Medicare-eligible customers including but not limited to, dental, vision, and short and long term disability insurance. In addition, the company provides ecommerce platforms and consumer engagement solutions, which includes market leading information, decision support, customer engagement, and transactional services to group of health insurance consumers; and organize and present the insurance information in objective format to individuals, families, and small businesses to research, analyze, compare and purchase health insurance plans. Further, it markets health insurance plans through its websites, including eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, PlanPrescriber.com, and GoMedigap.com. The company also offers online sponsorship and advertising, non-broker of record, lead referral, technology licensing, as well as performs various post-enrollment services for members in Medicare health insurance plans. eHealth, Inc. was incorporated in 1997 and is headquartered in Austin, Texas.
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