Financial Review: Goosehead Insurance (NASDAQ:GSHD) & Willis Towers Watson Public (NASDAQ:WTW)

Goosehead Insurance (NASDAQ:GSHDGet Rating) and Willis Towers Watson Public (NASDAQ:WTWGet Rating) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Valuation & Earnings

This table compares Goosehead Insurance and Willis Towers Watson Public’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Goosehead Insurance $151.31 million 12.74 $5.40 million $0.16 324.46
Willis Towers Watson Public $9.00 billion 2.58 $4.22 billion $28.62 7.27

Willis Towers Watson Public has higher revenue and earnings than Goosehead Insurance. Willis Towers Watson Public is trading at a lower price-to-earnings ratio than Goosehead Insurance, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Goosehead Insurance and Willis Towers Watson Public’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Goosehead Insurance 2.20% -5.90% 1.38%
Willis Towers Watson Public 39.57% 13.43% 4.45%

Risk & Volatility

Goosehead Insurance has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Willis Towers Watson Public has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Goosehead Insurance and Willis Towers Watson Public, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goosehead Insurance 1 2 5 0 2.50
Willis Towers Watson Public 1 3 0 0 1.75

Goosehead Insurance currently has a consensus price target of $126.43, indicating a potential upside of 143.55%. Willis Towers Watson Public has a consensus price target of $236.67, indicating a potential upside of 13.72%. Given Goosehead Insurance’s stronger consensus rating and higher probable upside, research analysts plainly believe Goosehead Insurance is more favorable than Willis Towers Watson Public.

Institutional & Insider Ownership

91.4% of Willis Towers Watson Public shares are owned by institutional investors. 48.4% of Goosehead Insurance shares are owned by insiders. Comparatively, 12.0% of Willis Towers Watson Public shares are owned by 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.

Goosehead Insurance Company Profile (Get Rating)

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that provides personal lines insurance agency services in the United States. The company operates in two segments, Corporate Channel and Franchise Channel. It offers homeowner's, insurance, automotive, dwelling property insurance, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2021, the company had 2,151 total franchises. Goosehead Insurance, Inc. was founded in 2003 and is headquartered in Westlake, Texas.

Willis Towers Watson Public Company Profile (Get Rating)

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. It operates through two segments, Health, Wealth and Career; and and Risk and Broking. The company offers actuarial support, plan design, and administrative services for traditional pension and retirement savings plans; plan management consulting, broking, and administration services for health and group benefit programs; and benefits outsourcing services. It also provides advice, data, software, and products to address clients' total rewards and talent issues. In addition, the company offers risk advice, insurance brokerage, and consulting services in the areas of property and casualty, aerospace, construction, and marine. Further, it offers investment consulting and discretionary management services to insurance and reinsurance companies; insurance consulting and technology, risk and capital management, pricing and predictive modeling, financial and regulatory reporting, financial and capital modeling, merger and acquisition, outsourcing, and business management services; wholesale insurance broking services to retail and wholesale brokers; and underwriting and capital management, capital market, and advisory and brokerage services. Additionally, the company provides primary medical and ancillary benefit exchange, and outsourcing services to active employees and retirees in the group and individual markets, as well as delivers healthcare and reimbursement accounts, including health savings accounts, health reimbursement arrangements, flexible spending accounts, and other consumer-directed accounts. The company was formerly known as Willis Group Holdings Public Limited Company and changed its name to Willis Towers Watson Public Limited Company in January 2016. Willis Towers Watson Public Limited Company was founded in 1828 and is based in London, the United Kingdom.

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