TWFG (TWFG) versus Its Peers Critical Review

TWFG (NASDAQ:TWFG) is one of 42 public companies in the “Insurance agents, brokers, & service” industry, but how does it contrast to its rivals? We will compare TWFG to related companies based on the strength of its dividends, valuation, earnings, profitability, risk, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

54.5% of shares of all “Insurance agents, brokers, & service” companies are owned by institutional investors. 66.5% of TWFG shares are owned by company insiders. Comparatively, 21.6% of shares of all “Insurance agents, brokers, & service” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares TWFG and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TWFG	$200.74 million	$26.10 million	3.26
TWFG Competitors	$8.74 billion	$640.24 million	-3.35

TWFG’s rivals have higher revenue and earnings than TWFG. TWFG is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares TWFG and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TWFG	N/A	N/A	N/A
TWFG Competitors	7.86%	30.96%	4.76%

Analyst Recommendations

This is a summary of current recommendations and price targets for TWFG and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	0	4	5	0	2.56
TWFG Competitors	218	1383	1531	41	2.44

TWFG currently has a consensus target price of $33.71, suggesting a potential downside of 4.08%. As a group, “Insurance agents, brokers, & service” companies have a potential upside of 8.56%. Given TWFG’s rivals higher possible upside, analysts plainly believe TWFG has less favorable growth aspects than its rivals.

Summary

TWFG rivals beat TWFG on 8 of the 12 factors compared.

About TWFG

TWFG, Inc. operates an independent distribution platform for personal and commercial insurance products in the United States. Its personal and commercial insurance products include auto, home, renters, life, health, motorcycle, umbrella, boat, recreational vehicle, flood, wind, event, luxury item, general liability, property, business auto, workers’ compensation, business owner policy, and professional liability insurance products, as well as commercial bonds and group benefits. The company was founded in 2001 and is based in The Woodlands, Texas. TWFG, Inc. operates as a subsidiary of Bunch Family Holdings, LLC.