Kemper (NYSE:KMPR) versus TWFG (NASDAQ:TWFG) Critical Survey

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

Risk & Volatility

Kemper has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, TWFG has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500.

Institutional & Insider Ownership

86.2% of Kemper shares are held by institutional investors. 0.8% of Kemper shares are held by insiders. Comparatively, 66.5% of TWFG shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Kemper and TWFG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kemper	3	2	2	0	1.86
TWFG	2	3	4	0	2.22

Kemper presently has a consensus price target of $56.67, indicating a potential upside of 47.69%. TWFG has a consensus price target of $32.86, indicating a potential upside of 29.41%. Given Kemper’s higher probable upside, equities research analysts plainly believe Kemper is more favorable than TWFG.

Valuation and Earnings

This table compares Kemper and TWFG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kemper	$4.64 billion	0.48	$317.80 million	$3.83	10.02
TWFG	$203.76 million	7.00	$2.74 million	$0.44	57.70

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kemper	5.13%	11.48%	2.60%
TWFG	2.87%	8.74%	7.27%

Summary

Kemper beats TWFG on 8 of the 14 factors compared between the two stocks.

About Kemper

Kemper Corporation, a diversified insurance holding company, engages in the provision of insurance products to individuals and businesses in the United States. The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance. It provides preferred and specialty automobile, homeowners, renters, fire, umbrella, general liability, and various other property and casualty insurance to individuals, as well as commercial automobile insurance to businesses. The company also offers life insurance, including permanent and term insurance; and supplemental accident and health insurance products, such as Medicare supplement insurance, fixed hospital indemnity, home health care, specified disease, and accident-only plans to individuals in rural, suburban, and urban areas. It distributes its products through independent agents and brokers. The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011. Kemper Corporation was incorporated in 1990 and is headquartered in Chicago, Illinois.

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.