Financial Contrast: Torchmark (TMK) versus SONY Finl HOLDI/ADR (SNYFY)

Torchmark (NYSE:TMK) and SONY Finl HOLDI/ADR (OTCMKTS:SNYFY) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for Torchmark and SONY Finl HOLDI/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Torchmark 4 2 1 0 1.57
SONY Finl HOLDI/ADR 0 0 0 0 N/A

Torchmark presently has a consensus target price of $83.43, suggesting a potential downside of 1.79%. Given Torchmark’s higher probable upside, equities research analysts plainly believe Torchmark is more favorable than SONY Finl HOLDI/ADR.

Profitability

This table compares Torchmark and SONY Finl HOLDI/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Torchmark 36.42% 11.53% 2.92%
SONY Finl HOLDI/ADR 3.98% 7.86% 0.39%

Valuation and Earnings

This table compares Torchmark and SONY Finl HOLDI/ADR’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Torchmark $4.16 billion 2.30 $1.45 billion $4.82 17.62
SONY Finl HOLDI/ADR $12.97 billion 0.72 $467.05 million N/A N/A

Torchmark has higher earnings, but lower revenue than SONY Finl HOLDI/ADR.

Dividends

Torchmark pays an annual dividend of $0.64 per share and has a dividend yield of 0.8%. SONY Finl HOLDI/ADR pays an annual dividend of $0.49 per share and has a dividend yield of 2.3%. Torchmark pays out 13.3% of its earnings in the form of a dividend. Torchmark has increased its dividend for 8 consecutive years.

Volatility and Risk

Torchmark has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, SONY Finl HOLDI/ADR has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Insider and Institutional Ownership

74.3% of Torchmark shares are held by institutional investors. 3.7% of Torchmark shares are held 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.

Summary

Torchmark beats SONY Finl HOLDI/ADR on 11 of the 15 factors compared between the two stocks.

Torchmark Company Profile

Torchmark Corporation, through its subsidiaries, provides various life and health insurance products, and annuities in the United States, Canada, and New Zealand. It operates through four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. The Life Insurance segment offers traditional and interest-sensitive whole life and term life insurance, and other life insurance. The Supplemental Health Insurance segment provides health insurance products comprising Medicare Supplements, critical illness, accident, and limited-benefit supplemental hospital and surgical coverages. The Annuities segment provides single-premium and flexible-premium deferred annuities. The company sells its products through sales by direct response, exclusive agents, and independent agents, as well as through direct mail, electronic media, and insert media. Torchmark Corporation was founded in 1900 and is headquartered in McKinney, Texas.

SONY Finl HOLDI/ADR Company Profile

Sony Financial Holdings Inc., together with its subsidiaries, provides financial services in Japan and internationally. The company operates in life insurance, non-life insurance, and banking businesses. Its insurance products include death-protection, medical, educational endowment, living benefit, and other insurance products; and non-life insurance products comprise automobile, medical, and cancer insurance products, as well as reinsurance services. The company's banking business provides Yen and foreign currency deposits, and mortgage loans, as well as investment trust, foreign currency margin trading, and other services; and credit card settlement services, as well as plans, develops, and operates nursing care homes. It provides its products through lifeplanner sales employees and independent agencies, as well as through Internet and telephone. The company was founded in 1979 and is headquartered in Tokyo, Japan. Sony Financial Holdings Inc. is a subsidiary of Sony Corporation.

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