Head-To-Head Survey: MGIC Investment (NYSE:MTG) and TWFG (NASDAQ:TWFG)

TWFG (NASDAQ:TWFG) and MGIC Investment (NYSE:MTG) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations for TWFG and MGIC Investment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	1	3	4	0	2.38
MGIC Investment	2	3	0	1	2.00

TWFG presently has a consensus price target of $33.29, suggesting a potential upside of 25.37%. MGIC Investment has a consensus price target of $26.80, suggesting a potential downside of 5.81%. Given TWFG’s stronger consensus rating and higher probable upside, equities research analysts clearly believe TWFG is more favorable than MGIC Investment.

Risk and Volatility

TWFG has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500. Comparatively, MGIC Investment has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Valuation and Earnings

This table compares TWFG and MGIC Investment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$203.76 million	7.31	$2.74 million	$0.41	64.76
MGIC Investment	$1.22 billion	5.23	$762.99 million	$3.11	9.15

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

Institutional and Insider Ownership

95.6% of MGIC Investment shares are owned by institutional investors. 66.5% of TWFG shares are owned by company insiders. Comparatively, 1.1% of MGIC Investment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares TWFG and MGIC Investment’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%
MGIC Investment	61.96%	14.63%	11.53%

Summary

MGIC Investment 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 MGIC Investment

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure. It also provides pool insurance for secondary market mortgage transactions; and contract underwriting services, as well as reinsurance. The company serves originators of residential mortgage loans, including savings institutions, commercial banks, mortgage brokers, credit unions, mortgage bankers, and other lenders. MGIC Investment Corporation was founded in 1957 and is headquartered in Milwaukee, Wisconsin.