Analyzing TWFG (TWFG) and Its Competitors

TWFG (NASDAQ:TWFG) is one of 10 publicly-traded companies in the “INS-MULTI LINE” industry, but how does it contrast to its peers? We will compare TWFG to similar businesses based on the strength of its dividends, analyst recommendations, institutional ownership, valuation, risk, profitability and earnings.

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	5.15%	9.60%	7.61%
TWFG Competitors	20.59%	11.31%	4.55%

Insider and Institutional Ownership

64.1% of shares of all “INS-MULTI LINE” companies are held by institutional investors. 66.5% of TWFG shares are held by company insiders. Comparatively, 1.9% of shares of all “INS-MULTI LINE” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares TWFG and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TWFG	$203.76 million	$2.74 million	3.17
TWFG Competitors	$6.80 billion	$694.77 million	391.57

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

Analyst Recommendations

This is a summary of recent ratings 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	47	263	251	12	2.40

TWFG presently has a consensus price target of $33.71, indicating a potential downside of 1.30%. As a group, “INS-MULTI LINE” companies have a potential upside of 18.36%. Given TWFG’s peers higher possible upside, analysts plainly believe TWFG has less favorable growth aspects than its peers.

Summary

TWFG peers 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.