Security National Financial (NASDAQ:SNFCA) vs. Globe Life (NYSE:GL) Critical Review

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

Risk and Volatility

Globe Life has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Security National Financial has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Profitability

This table compares Globe Life and Security National Financial’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%
Security National Financial	11.10%	9.13%	2.36%

Institutional and Insider Ownership

81.6% of Globe Life shares are owned by institutional investors. Comparatively, 45.6% of Security National Financial shares are owned by institutional investors. 2.1% of Globe Life shares are owned by insiders. Comparatively, 15.0% of Security National Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Globe Life and Security National Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globe Life	0	2	8	1	2.91
Security National Financial	0	1	0	0	2.00

Globe Life presently has a consensus price target of $191.67, suggesting a potential upside of 11.01%. Given Globe Life’s stronger consensus rating and higher possible upside, research analysts plainly believe Globe Life is more favorable than Security National Financial.

Earnings and Valuation

This table compares Globe Life and Security National Financial”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	2.21	$1.16 billion	$15.06	11.46
Security National Financial	$344.59 million	0.69	$32.15 million	$1.39	6.27

Globe Life has higher revenue and earnings than Security National Financial. Security National Financial 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 Security National Financial on 13 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 Security National Financial

Security National Financial Corporation engages in the life insurance, cemetery and mortuary, and mortgage businesses. The company's Life Insurance segment is involved in selling and servicing lines of life insurance, annuity products, and accident and health insurance. It offers various life insurance products, including funeral plans and interest-sensitive life insurance, as well as other traditional life, accident, and health insurance products; annuity products comprising single and flexible premium deferred annuities, and immediate annuities; and diver's accident insurance policies. This segment also cedes and assumes various risks with various authorized unaffiliated reinsurers pursuant to reinsurance treaties. Its Cemetery and Mortuary segment operates eight mortuaries and five cemeteries in Utah; one cemetery in California; and four mortuaries and one cemetery in New Mexico. This segment also offers plots, interment vaults, mausoleum crypts, markers, caskets, urns, and other death care related products; and provides professional services of funeral directors, opening and closing of graves, use of chapels and viewing rooms, and use of automobiles and clothing. The company's Mortgages segment originates and underwrites residential and commercial loans for new construction, existing homes, and real estate projects primarily in Florida, Nevada, Texas, and Utah. It offers residential mortgage lending services to real estate brokers and builders, as well as directly with consumers. Security National Financial Corporation was founded in 1965 and is headquartered in Salt Lake City, Utah.