TWFG (NASDAQ:TWFG) versus Horace Mann Educators (NYSE:HMN) Financial Survey

TWFG (NASDAQ:TWFG) and Horace Mann Educators (NYSE:HMN) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

99.3% of Horace Mann Educators shares are owned by institutional investors. 66.5% of TWFG shares are owned by insiders. Comparatively, 4.0% of Horace Mann Educators shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares TWFG and Horace Mann Educators’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TWFG	3.11%	13.51%	11.06%
Horace Mann Educators	9.53%	13.92%	1.31%

Earnings and Valuation

This table compares TWFG and Horace Mann Educators”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$247.08 million	4.29	$7.96 million	$0.51	37.00
Horace Mann Educators	$1.70 billion	1.06	$162.10 million	$3.90	11.46

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

Analyst Recommendations

This is a summary of current recommendations and price targets for TWFG and Horace Mann Educators, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	1	3	3	1	2.50
Horace Mann Educators	0	1	2	1	3.00

TWFG currently has a consensus price target of $26.50, indicating a potential upside of 40.43%. Horace Mann Educators has a consensus price target of $47.33, indicating a potential upside of 5.94%. Given TWFG’s higher probable upside, equities analysts plainly believe TWFG is more favorable than Horace Mann Educators.

Volatility & Risk

TWFG has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Horace Mann Educators has a beta of 0.04, suggesting that its share price is 96% 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 Horace Mann Educators

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. The company operates through Property & Casualty, Life & Retirement, and Supplemental & Group Benefits segments. Its Property & Casualty segment offers insurance products, including private passenger auto insurance, residential home insurance, and personal umbrella insurance; and provides auto coverages including liability and collision, and property coverage for homeowners and renters. The Life & Retirement segment markets tax-qualified fixed, fixed indexed, and variable annuities; and internal revenue code for educator, which allows public school employees and employees of other tax-exempt organizations, such as not-for-profit private schools, to utilize pretax income to make periodic contributions to a qualified retirement plan. The Supplemental & Group Benefits segment offers employer-sponsored products including accident, critical illness, limited-benefit fixed indemnity insurance, term life, and short-term and long-term disability, as well as worksite direct products, such as supplemental heart, cancer, disability, and accident coverage. The company was founded in 1945 and is headquartered in Springfield, Illinois.