TWFG (NASDAQ:TWFG) and Assurant (NYSE:AIZ) Critical Review

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

Earnings & Valuation

This table compares TWFG and Assurant”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	4.36	$7.96 million	$0.54	36.80
Assurant	$12.81 billion	1.00	$872.70 million	$19.55	13.17

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

Insider & Institutional Ownership

92.7% of Assurant shares are held by institutional investors. 68.4% of TWFG shares are held by insiders. Comparatively, 0.5% of Assurant 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 Ratings

This is a breakdown of current ratings for TWFG and Assurant, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	1	4	3	0	2.25
Assurant	0	1	9	0	2.90

TWFG currently has a consensus target price of $26.00, indicating a potential upside of 30.85%. Assurant has a consensus target price of $275.83, indicating a potential upside of 7.13%. Given TWFG’s higher probable upside, equities analysts plainly believe TWFG is more favorable than Assurant.

Risk and Volatility

TWFG has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Assurant has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TWFG	3.04%	15.96%	12.76%
Assurant	7.60%	20.32%	3.26%

Summary

Assurant beats TWFG on 9 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 Assurant

Assurant, Inc., together with its subsidiaries, provides business services that supports, protects, and connects consumer purchases in North America, Latin America, Europe, and the Asia Pacific. The company operates through two segments: Global Lifestyle and Global Housing. The Global Lifestyle segment offers mobile device solutions, and extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products; and vehicle protection, commercial equipment, and other related services. The Global Housing segment provides lender-placed homeowners, manufactured housing, and flood insurance; renters insurance and related products; and voluntary manufactured housing, and condominium and homeowners insurance products. The company was formerly known as Fortis, Inc. and changed its name to Assurant, Inc. in February 2004. Assurant, Inc. was founded in 1892 and is headquartered in Atlanta, Georgia.