uploads/2015/10/tmk-pbv.jpg

How Has Torchmark Performed in a Competitive Market?

By

Updated

Torchmark and its peers

In this article, we’ll compare Torchmark (TMK) to its industry peers.

  • The PE (price-to-earnings) ratios of Torchmark, Prudential Financial (PRU), Unum Group (UNM), CNO Financial Group (CNO), and Primerica (PRI) are 14.36x, 15.66x, 22.84x, 13.71x, and 14.16x, respectively.
  • The PBV (price-to-book value) ratios of Torchmark, Prudential, Unum, CNO, and Primerica are 1.71x, 0.89x, 0.97x, 0.87x, and 2.05x, respectively.

Thus, the company is far ahead of its peers based on PBV.

Article continues below advertisement

ETFs that invest in Torchmark

The SPDR S&P Insurance ETF (KIE) invests 2.1% of its holdings in Torchmark. The ETF tracks an equal-weighted index of insurance companies as defined by the GICS (Global Industry Classification Standard).

The PowerShares DWA Financial Momentum ETF (PFI) invests 2.0% of its holdings in Torchmark. The ETF tracks an index of US financial companies selected and weighted by price momentum.

The iShares US Insurance ETF (IAK) invests 1.3% of its holdings in Torchmark. The ETF tracks a market-cap index of US insurance companies.

Torchmark and its ETFs compared

Now let’s look at Torchmark compared to its ETFs:

  • The year-to-date price movements of Torchmark, KIE, PFI, and IAK are 8.7%, 8.3%, 2.4%, and 5.7%, respectively.
  • The PE (price-to-earnings) ratios of Torchmark, KIE, PFI, and IAK are 14.36x, 12.54x, 16.45x, and 10.67x, respectively.
  • The PBV (price-to-book value) ratio of Torchmark, KIE, PFI, and IAK are 1.71x, 1.00x, 2.49x, and 1.00x, respectively.

Thus, the company has outperformed its ETFs based on price movement, PE, and PBV.

Advertisement

More From Market Realist