Head to Head Review: TWFG (NASDAQ:TWFG) & SelectQuote (NYSE:SLQT)

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for TWFG and SelectQuote, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	0	4	5	0	2.56
SelectQuote	0	1	1	1	3.00

TWFG presently has a consensus target price of $31.86, suggesting a potential upside of 4.83%. SelectQuote has a consensus target price of $4.50, suggesting a potential downside of 24.94%. Given TWFG’s higher possible upside, research analysts clearly believe TWFG is more favorable than SelectQuote.

Insider & Institutional Ownership

34.6% of SelectQuote shares are held by institutional investors. 11.4% of SelectQuote shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TWFG	N/A	N/A	N/A
SelectQuote	-3.45%	-15.00%	-3.95%

Earnings and Valuation

This table compares TWFG and SelectQuote”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$172.93 million	2.60	$26.10 million	N/A	N/A
SelectQuote	$1.46 billion	0.71	-$34.12 million	($0.09)	-66.61

TWFG has higher earnings, but lower revenue than SelectQuote.

Summary

TWFG beats SelectQuote on 7 of the 12 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 SelectQuote

SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.