Analyzing Hamilton Insurance Group (NYSE:HG) & TWFG (NASDAQ:TWFG)

Hamilton Insurance Group (NYSE:HG) and TWFG (NASDAQ:TWFG) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Insider & Institutional Ownership

29.2% of Hamilton Insurance Group shares are owned by institutional investors. 17.5% of Hamilton Insurance Group shares are owned by insiders. Comparatively, 66.5% of TWFG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Hamilton Insurance Group and TWFG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hamilton Insurance Group	14.67%	13.27%	3.94%
TWFG	2.74%	7.82%	6.58%

Analyst Ratings

This is a breakdown of recent recommendations for Hamilton Insurance Group and TWFG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Insurance Group	0	2	6	1	2.89
TWFG	1	3	4	0	2.38

Hamilton Insurance Group currently has a consensus target price of $27.00, indicating a potential upside of 12.78%. TWFG has a consensus target price of $33.29, indicating a potential upside of 36.53%. Given TWFG’s higher probable upside, analysts plainly believe TWFG is more favorable than Hamilton Insurance Group.

Risk and Volatility

Hamilton Insurance Group has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, TWFG has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Insurance Group	$2.33 billion	1.03	$400.43 million	$3.62	6.61
TWFG	$203.76 million	6.71	$2.74 million	$0.41	59.46

Hamilton Insurance Group has higher revenue and earnings than TWFG. Hamilton Insurance Group is trading at a lower price-to-earnings ratio than TWFG, indicating that it is currently the more affordable of the two stocks.

Summary

Hamilton Insurance Group beats TWFG on 10 of the 15 factors compared between the two stocks.

About Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.

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.