TWFG (NASDAQ:TWFG) & GoHealth (NASDAQ:GOCO) Head to Head Review

GoHealth (NASDAQ:GOCO) and TWFG (NASDAQ:TWFG) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for GoHealth and TWFG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoHealth	0	1	0	0	2.00
TWFG	0	3	6	0	2.67

GoHealth currently has a consensus price target of $13.00, indicating a potential upside of 5.09%. TWFG has a consensus price target of $31.14, indicating a potential upside of 7.69%. Given TWFG’s stronger consensus rating and higher possible upside, analysts plainly believe TWFG is more favorable than GoHealth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GoHealth	-4.32%	-17.17%	-4.58%
TWFG	N/A	N/A	N/A

Institutional and Insider Ownership

24.2% of GoHealth shares are held by institutional investors. 35.0% of GoHealth shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoHealth	$686.46 million	0.41	-$63.26 million	($3.50)	-3.53
TWFG	$185.45 million	2.31	$26.10 million	N/A	N/A

TWFG has lower revenue, but higher earnings than GoHealth.

Summary

TWFG beats GoHealth on 8 of the 11 factors compared between the two stocks.

About GoHealth

GoHealth, Inc. operates as a health insurance marketplace and Medicare-focused digital health company in the United States. The company operates a technology platform that leverages machine-learning algorithms of insurance behavioral data to optimize the process for helping individuals find the health insurance plan for their specific needs. It provides Medicare plans, including Medicare Advantage, Medicare Supplement and Prescription Drug, and Medicare Special Needs Plans. The company also offers partner marketing services. It sells its products through carriers and online platform, as well as independent and external agencies. The company was founded in 2001 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.