TWFG (NASDAQ:TWFG – Get Free Report) and Radian Group (NYSE:RDN – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Institutional and Insider Ownership
95.3% of Radian Group shares are held by institutional investors. 68.4% of TWFG shares are held by insiders. Comparatively, 2.0% of Radian Group shares 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.
Earnings and Valuation
This table compares TWFG and Radian Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TWFG | $247.08 million | 4.63 | $7.96 million | $0.54 | 39.15 |
| Radian Group | $1.20 billion | 3.83 | $582.64 million | $4.06 | 8.50 |
Radian Group has higher revenue and earnings than TWFG. Radian Group is trading at a lower price-to-earnings ratio than TWFG, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TWFG and Radian Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TWFG | 3.04% | 15.96% | 12.76% |
| Radian Group | 40.50% | 13.57% | 6.95% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for TWFG and Radian Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TWFG | 1 | 3 | 3 | 1 | 2.50 |
| Radian Group | 0 | 3 | 5 | 0 | 2.63 |
TWFG presently has a consensus price target of $24.86, indicating a potential upside of 17.58%. Radian Group has a consensus price target of $42.67, indicating a potential upside of 23.64%. Given Radian Group’s stronger consensus rating and higher probable upside, analysts clearly believe Radian Group is more favorable than TWFG.
Volatility & Risk
TWFG has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Radian Group has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.
Summary
Radian Group beats TWFG on 9 of the 15 factors compared between the two stocks.
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.
About Radian Group
Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. It operates through two segments, Mortgage Insurance and Homegenius segments. The Mortgage Insurance segment aggregates, manages, and distributes U.S. mortgage credit risk for mortgage lending institutions and mortgage credit investors, through private mortgage insurance on residential first-lien mortgage loans; and other credit risk management solutions, including contract underwriting. The Homegenius segment offers title services, including a suite of insurance and non-insurance titles; tax and title data, centralized recording, document retrieval, and default curative title services; deed and property reports; closing and settlement services; mortgage underwriting and processing; escrow; appraisal management; and real estate brokerage. This segment also provides real estate valuation products and services; asset management services for managing real estate owned properties, which includes a web-based workflow solution; and a suite of real estate technology products and services to facilitate real estate transactions, such as proprietary platforms as a service solution. It serves mortgage originators, such as mortgage bankers, commercial banks, savings institutions, credit unions, and community banks; and consumers, mortgage lenders, mortgage and real estate investors, government-sponsored enterprises, real estate brokers and agents, and corporations for their employees. The company was formerly known as CMAC Investment Corp. and changed its name to Radian Group Inc. in June 1999. Radian Group Inc. was founded in 1977 and is headquartered in Wayne, Pennsylvania.
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