TWFG (NASDAQ:TWFG – Get Free Report) and The Hartford Insurance Group (NYSE:HIG – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Profitability
This table compares TWFG and The Hartford Insurance Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TWFG | 2.90% | 19.49% | 15.20% |
| The Hartford Insurance Group | 15.00% | 21.66% | 4.68% |
Insider & Institutional Ownership
93.4% of The Hartford Insurance Group shares are held by institutional investors. 68.4% of TWFG shares are held by company insiders. Comparatively, 1.3% of The Hartford Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares TWFG and The Hartford Insurance Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TWFG | $247.08 million | 6.37 | $7.96 million | $0.59 | 49.33 |
| The Hartford Insurance Group | $28.37 billion | 1.30 | $3.84 billion | $15.47 | 8.82 |
The Hartford Insurance Group has higher revenue and earnings than TWFG. The Hartford 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.
Volatility and Risk
TWFG has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, The Hartford Insurance Group has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for TWFG and The Hartford Insurance Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TWFG | 0 | 3 | 4 | 1 | 2.75 |
| The Hartford Insurance Group | 0 | 12 | 5 | 1 | 2.39 |
TWFG presently has a consensus target price of $29.29, indicating a potential upside of 0.62%. The Hartford Insurance Group has a consensus target price of $145.25, indicating a potential upside of 6.41%. Given The Hartford Insurance Group’s higher possible upside, analysts clearly believe The Hartford Insurance Group is more favorable than TWFG.
Summary
The Hartford Insurance Group beats TWFG on 9 of the 14 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 The Hartford Insurance Group
The Hartford Financial Services Group, Inc., together with its subsidiaries, provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers insurance coverages, including workers' compensation, property, automobile, general and professional liability, package business, umbrella, fidelity and surety, marine, livestock, accident, health, and reinsurance through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channels and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Group Benefits segment provides group life, disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and leave management solution. This segment also distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers managed mutual funds across various asset classes; and exchange-traded funds through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers, as well as investment management, distribution, and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut.
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