Contrasting Swiss Life (OTCMKTS:SZLMY) and Goosehead Insurance (NASDAQ:GSHD)

Swiss Life (OTCMKTS:SZLMY) and Goosehead Insurance (NASDAQ:GSHD) are both financial services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Profitability

This table compares Swiss Life and Goosehead Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Swiss Life	N/A	N/A	N/A
Goosehead Insurance	6.71%	244.15%	5.41%

Earnings & Valuation

This table compares Swiss Life and Goosehead Insurance”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swiss Life	N/A	N/A	N/A	$1.19	33.92
Goosehead Insurance	$276.59 million	13.19	$14.14 million	$0.62	154.89

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

Analyst Recommendations

This is a summary of current ratings and price targets for Swiss Life and Goosehead Insurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swiss Life	0	0	0	0	N/A
Goosehead Insurance	1	4	5	0	2.40

Goosehead Insurance has a consensus price target of $85.00, indicating a potential downside of 11.49%. Given Goosehead Insurance’s higher possible upside, analysts clearly believe Goosehead Insurance is more favorable than Swiss Life.

Dividends

Swiss Life pays an annual dividend of $0.25 per share and has a dividend yield of 0.6%. Goosehead Insurance pays an annual dividend of $4.60 per share and has a dividend yield of 4.8%. Swiss Life pays out 20.9% of its earnings in the form of a dividend. Goosehead Insurance pays out 741.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Goosehead Insurance beats Swiss Life on 8 of the 10 factors compared between the two stocks.

About Swiss Life

Swiss Life Holding AG provides life, pensions, and financial solutions for private and corporate clients. It operates through Switzerland, France, Germany, International, Asset Managers, and Other segments. The company offers a range of life, pension, health, annuity, and investment-type policies to groups and individuals, as well as disability coverage. It also provides property and casualty, liability and motor, accident, health, and payment protection insurance products. In addition, the company manages assets and provides advisory services for institutional clients. Further, it engages in the private equity, information technology, real estate, finance, banking, reinsurance, brokering, staff restaurant/canteen, and investment funds businesses. The company distributes its products through its sales force and distribution partners. It operates in Switzerland, France, Germany, and internationally under the Swiss Life Select, Tecis, Horbach, Proventus, Chase de Vere, and Fincentrum brands. Swiss Life Holding AG was founded in 1857 and is based in Zurich, Switzerland.

About Goosehead Insurance

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.