TWFG (NASDAQ:TWFG) and Equitable (NYSE:EQH) Critical Comparison

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

Insider and Institutional Ownership

92.7% of Equitable shares are held by institutional investors. 1.1% of Equitable shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Equitable and TWFG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equitable	0	3	7	0	2.70
TWFG	0	3	6	0	2.67

Equitable currently has a consensus price target of $48.70, suggesting a potential upside of 4.06%. TWFG has a consensus price target of $30.43, suggesting a potential downside of 8.92%. Given Equitable’s stronger consensus rating and higher possible upside, equities analysts plainly believe Equitable is more favorable than TWFG.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equitable	$10.53 billion	1.39	$1.30 billion	($1.09)	-42.94
TWFG	$172.93 million	2.86	$26.10 million	N/A	N/A

Equitable has higher revenue and earnings than TWFG.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Equitable	-2.64%	76.47%	0.68%
TWFG	N/A	N/A	N/A

Summary

Equitable beats TWFG on 9 of the 11 factors compared between the two stocks.

About Equitable

Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related services to various clients through institutional. The Protection Solutions segment provides life insurance products, such as VUL insurance and IUL insurance, term life, and employee benefits business, such as dental, vision, life, as well as short- and long-term disability insurance products to small and medium-sized businesses. The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.

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.