Security National Financial (NASDAQ: SNFCA) and China Life Insurance (NYSE:LFC) are both life insurance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Valuation and Earnings

This table compares Security National Financial and China Life Insurance’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Security National Financial $307.21 million 0.28 $12.18 million $0.33 16.36
China Life Insurance $81.43 billion 1.09 $2.88 billion $0.53 29.74

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Security National Financial and China Life Insurance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Security National Financial 0 0 0 0 N/A
China Life Insurance 0 4 2 0 2.33

Profitability

This table compares Security National Financial and China Life Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Security National Financial 2.37% 5.03% 0.70%
China Life Insurance 5.21% 10.32% 1.16%

Dividends

China Life Insurance pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. Security National Financial does not pay a dividend. China Life Insurance pays out 26.4% of its earnings in the form of a dividend. Security National Financial has raised its dividend for 3 consecutive years.

Risk and Volatility

Security National Financial has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, China Life Insurance has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Institutional and Insider Ownership

8.5% of Security National Financial shares are held by institutional investors. Comparatively, 0.3% of China Life Insurance shares are held by institutional investors. 18.2% of Security National Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

China Life Insurance beats Security National Financial on 11 of the 15 factors compared between the two stocks.

Security National Financial Company Profile

Security National Financial Corporation is a holding company. The Company operates through three segments: life insurance, cemetery and mortuary, and mortgage loans. The life insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products, and accident and health insurance. The cemetery and mortuary segment consists of approximately seven mortuaries and five cemeteries in the state of Utah and a cemetery in the state of California. The mortgage loan segment originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes and real estate projects. The Company is also engaged in pre-need selling of funeral, cemetery, mortuary and cremation services through its Utah and California operations. It also sells pre-need funeral, cemetery and cremation services.

China Life Insurance Company Profile

China Life Insurance Company Limited is a life insurance company. The Company provides a range of insurance products, including individual and group life insurance, health insurance and accident insurance products. It operates through three segments: Life Insurance, Health Insurance, and Accident Insurance. Its Life Insurance segment provides participating and non-participating life insurance and annuities to individuals and groups. Its Health Insurance segment provides short-term and long-term health insurance to individuals and groups. Its Accident Insurance segment provides short-term and long-term accident insurance to individuals and groups.

Receive News & Ratings for Security National Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Security National Financial and related companies with MarketBeat.com's FREE daily email newsletter.