Contrasting TWFG (NASDAQ:TWFG) and MBIA (NYSE:MBI)

TWFG (NASDAQ:TWFG) and MBIA (NYSE:MBI) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Earnings & Valuation

This table compares TWFG and MBIA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$203.76 million	7.09	$2.74 million	$0.41	62.83
MBIA	$42.00 million	8.02	-$444.00 million	($4.65)	-1.44

TWFG has higher revenue and earnings than MBIA. MBIA is trading at a lower price-to-earnings ratio than TWFG, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for TWFG and MBIA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	1	3	4	0	2.38
MBIA	1	0	1	0	2.00

TWFG currently has a consensus target price of $33.29, suggesting a potential upside of 29.21%. MBIA has a consensus target price of $8.00, suggesting a potential upside of 19.85%. Given TWFG’s stronger consensus rating and higher probable upside, analysts plainly believe TWFG is more favorable than MBIA.

Volatility and Risk

TWFG has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500. Comparatively, MBIA has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500.

Insider and Institutional Ownership

61.0% of MBIA shares are owned by institutional investors. 66.5% of TWFG shares are owned by insiders. Comparatively, 12.6% of MBIA shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TWFG	2.74%	7.82%	6.58%
MBIA	-218.45%	N/A	-1.75%

Summary

TWFG beats MBIA on 11 of the 14 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 MBIA

MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States. It operates United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, and privately issued bonds used for the financing for utilities, toll roads, bridges, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.