Head to Head Review: Ping An Insurance Co. of China (OTCMKTS:PNGAY) vs. TWFG (NASDAQ:TWFG)

TWFG (NASDAQ:TWFG) and Ping An Insurance Co. of China (OTCMKTS:PNGAY) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Earnings and Valuation

This table compares TWFG and Ping An Insurance Co. of China”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$203.76 million	7.73	$2.74 million	$0.44	63.66
Ping An Insurance Co. of China	$158.77 billion	1.04	$17.61 billion	$2.13	8.49

Ping An Insurance Co. of China has higher revenue and earnings than TWFG. Ping An Insurance Co. of China 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 breakdown of current ratings and price targets for TWFG and Ping An Insurance Co. of China, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	1	3	4	0	2.38
Ping An Insurance Co. of China	0	1	0	0	2.00

TWFG currently has a consensus price target of $32.86, suggesting a potential upside of 17.31%. Given TWFG’s stronger consensus rating and higher possible upside, equities research analysts plainly believe TWFG is more favorable than Ping An Insurance Co. of China.

Insider and Institutional Ownership

0.0% of Ping An Insurance Co. of China shares are held by institutional investors. 66.5% of TWFG shares are held by company insiders. Comparatively, 0.1% of Ping An Insurance Co. of China shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares TWFG and Ping An Insurance Co. of China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TWFG	2.87%	8.74%	7.27%
Ping An Insurance Co. of China	11.89%	10.48%	1.05%

Volatility and Risk

TWFG has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500. Comparatively, Ping An Insurance Co. of China has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.

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 Ping An Insurance Co. of China

Ping An Insurance (Group) Company of China, Ltd. provides financial products and services for insurance, banking, asset management, and technology businesses in the People's Republic of China. The company operates through Life and Health Insurance; Property and Casualty Insurance; Banking; Asset Management; and Technology segments. Its Life and Health Insurance segment offers term, whole-life, endowment, annuity, investment-linked, universal life, and health care and medical insurance to individual and corporate customers. The company's Property and Casualty Insurance segment provides auto, non-auto, and accident and health insurance to individual and corporate customers. Its Banking segment undertakes loan and intermediary businesses with corporate and retail customers; and offers wealth management and credit card services to individual customers. The company's Asset Management segment provides trust products services, brokerage services, trading services, investment banking services, investment management, finance lease, and other asset management services. Its Technology segment offers financial and daily-life services through internet platforms, such as financial transaction information service, and health care service platforms. The company also provides annuity insurance, IT and business process outsourcing, real estate investment and management, futures brokerage, project investment, currency brokerage, property agency, fund raising and distribution, real estate development and leasing, and insurance agency services. In addition, it provides factoring, equity investment, logistics and warehousing, management consulting, e-commerce, and credit information services; and operates an expressway, as well as produces and sells consumer chemicals. The company was incorporated in 1988 and is based in Shenzhen, China.