Reviewing TWFG (TWFG) & The Competition

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

Insider and Institutional Ownership

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

Valuation and Earnings

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

Analyst Recommendations

This is a summary of current ratings for TWFG and its competitors, as reported by MarketBeat.

	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, indicating a potential downside of 4.08%. As a group, “Insurance agents, brokers, & service” companies have a potential upside of 8.56%. Given TWFG’s competitors higher probable upside, analysts clearly believe TWFG has less favorable growth aspects than its competitors.

Profitability

This table compares TWFG and its competitors’ 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%

Summary

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

TWFG Company Profile

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.