Critical Analysis: Kering (OTCMKTS:PPRUY) vs. TWFG (NASDAQ:TWFG)

Kering (OTCMKTS:PPRUY) and TWFG (NASDAQ:TWFG) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Insider & Institutional Ownership

1.0% of Kering shares are held by institutional investors. 66.5% of TWFG shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Kering and TWFG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kering	3	5	0	1	1.89
TWFG	0	4	5	0	2.56

TWFG has a consensus target price of $33.71, suggesting a potential downside of 3.67%. Given TWFG’s stronger consensus rating and higher probable upside, analysts plainly believe TWFG is more favorable than Kering.

Profitability

This table compares Kering and TWFG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kering	N/A	N/A	N/A
TWFG	N/A	N/A	N/A

Valuation & Earnings

This table compares Kering and TWFG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kering	$18.61 billion	1.33	$1.23 billion	N/A	N/A
TWFG	$193.72 million	10.13	$26.10 million	$10.77	3.25

Kering has higher revenue and earnings than TWFG.

Summary

TWFG beats Kering on 5 of the 9 factors compared between the two stocks.

About Kering

Kering SA manages the development of a series of renowned houses in fashion, leather goods and jewelry in France, the Asia-Pacific, Western Europe, North America, Japan, and internationally. The company offers ready-to-wear products apparel and accessories for men and women. It also offers leather goods and shoes; watches and jewelry; eyewear products; and fragrances and cosmetics. The company provides Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735, Kering Beauté, and Kering Eyewear brands. The company was formerly known as PPR SA and changed its name to Kering SA in June 2013. Kering SA was founded in 1963 and is based in Paris, France.

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.