Lincoln National Corporation (LNC) vs Primerica, Inc. (PRI)

Lincoln National Corporation and Primerica, Inc. are both Insurance Life companies. Primerica, Inc. is the larger, with a market value of $8.7B against $7.7B — 1.1× the size. Lincoln National Corporation trades at the lower P/E: 3.4× against 11.3×. Primerica, Inc. grew revenue faster over the last twelve months: 8.57% against 7.91%. Primerica, Inc. has the higher net margin (23.2% vs 11.7%) and the lower return on invested capital (17.9% vs 24.5%). Both pay a dividend; Lincoln National Corporation yields more (4.52% vs 1.64%). Across the 20 metrics below, Primerica, Inc. leads on 11 and Lincoln National Corporation on 9.

Valuation

Metric LNC PRI Insurance Life median
P/E 3.37 11.34 12.80
P/S 0.40 2.57 0.76
P/B 0.74 3.50 1.09
Price to free cash flow n/m 10.48 7.67
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 29.65% 8.82% 7.81%
Free cash flow yield (17.29%) 9.54% 11.89%

Profitability

Metric LNC PRI Insurance Life median
Gross margin 16.35% 81.38% 32.44%
Operating margin 16.35% 30.60% 11.31%
Net margin 11.74% 23.20% 6.61%
Free cash flow margin (6.87%) 24.54% 15.04%
Return on equity 23.98% 32.97% 8.67%
Return on assets 0.55% 5.38% 0.67%
Return on invested capital 24.53% 17.86% 8.20%

Growth

Metric LNC PRI Insurance Life median
Revenue growth (TTM) 7.91% 8.57% 7.91%
EPS growth (last fiscal year) (68.33%) 67.10% (20.59%)
Revenue growth, 5-year CAGR 0.87% 8.22% 1.08%
Net income growth, 5-year CAGR 16.83% 14.33% 0.00%

Health

Metric LNC PRI Insurance Life median
Debt to equity 0.60 0.66 0.48
Current ratio 0.20 0.33 0.21
Net debt to EBITDA (2.07) 0.76 0.12

Dividend

Metric LNC PRI Insurance Life median
Dividend yield 4.52% 1.64% 2.17%
Payout ratio 0.16 0.19 0.26

Size

Metric LNC PRI Insurance Life median
Market cap 7.66b 8.65b 7.66b

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