Contrasting TWFG (NASDAQ:TWFG) & Goosehead Insurance (NASDAQ:GSHD)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$185.45 million	2.83	$26.10 million	N/A	N/A
Goosehead Insurance	$261.28 million	17.54	$14.14 million	$0.72	171.52

TWFG has higher earnings, but lower revenue than Goosehead Insurance.

Analyst Ratings

This is a summary of current ratings and target prices for TWFG and Goosehead Insurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	0	3	6	0	2.67
Goosehead Insurance	1	4	5	0	2.40

TWFG presently has a consensus target price of $30.43, suggesting a potential downside of 14.04%. Goosehead Insurance has a consensus target price of $97.90, suggesting a potential downside of 20.72%. Given TWFG’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TWFG is more favorable than Goosehead Insurance.

Profitability

This table compares TWFG and Goosehead Insurance’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
Goosehead Insurance	6.77%	284.41%	5.53%

Summary

Goosehead Insurance beats TWFG on 5 of the 9 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 Goosehead Insurance

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.