Comparing 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 weigh in compared to its peers? We will compare TWFG to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Insider and Institutional 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 company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
TWFG	$200.74 million	$26.10 million	3.33
TWFG Competitors	$8.74 billion	$640.24 million	-2.86

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

Analyst Ratings

This is a breakdown of current recommendations for TWFG and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	0	4	5	0	2.56
TWFG Competitors	219	1385	1535	41	2.44

TWFG currently has a consensus target price of $33.71, indicating a potential downside of 5.94%. As a group, “Insurance agents, brokers, & service” companies have a potential upside of 22.52%. Given TWFG’s peers higher probable upside, analysts clearly believe TWFG has less favorable growth aspects than its peers.

Profitability

This table compares TWFG and its peers’ 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 peers 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.