Financial Survey: TWFG (NASDAQ:TWFG) vs. SelectQuote (NYSE:SLQT)

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

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%

Institutional & Insider Ownership

34.6% of SelectQuote shares are owned by institutional investors. 11.4% of SelectQuote shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$172.93 million	2.63	$26.10 million	N/A	N/A
SelectQuote	$1.32 billion	0.78	-$34.12 million	($0.28)	-21.55

TWFG has higher earnings, but lower revenue than SelectQuote.

Analyst Recommendations

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

	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 price target of $31.86, suggesting a potential upside of 3.77%. SelectQuote has a consensus price target of $4.50, suggesting a potential downside of 25.43%. Given TWFG’s higher possible upside, equities research analysts plainly believe TWFG is more favorable 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.