Contrasting Willis Towers Watson Public (NASDAQ:WTW) & TWFG (NASDAQ:TWFG)

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

Insider and Institutional Ownership

93.1% of Willis Towers Watson Public shares are held by institutional investors. 0.2% of Willis Towers Watson Public shares are held 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for TWFG and Willis Towers Watson Public, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	0	3	6	0	2.67
Willis Towers Watson Public	1	7	8	0	2.44

TWFG presently has a consensus price target of $27.86, indicating a potential downside of 14.51%. Willis Towers Watson Public has a consensus price target of $312.27, indicating a potential upside of 1.41%. Given Willis Towers Watson Public’s higher possible upside, analysts clearly believe Willis Towers Watson Public is more favorable than TWFG.

Valuation and Earnings

This table compares TWFG and Willis Towers Watson Public”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$172.93 million	2.79	$26.10 million	N/A	N/A
Willis Towers Watson Public	$9.48 billion	3.27	$1.06 billion	($7.28)	-42.30

Willis Towers Watson Public has higher revenue and earnings than TWFG.

Profitability

This table compares TWFG and Willis Towers Watson Public’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
Willis Towers Watson Public	-7.36%	18.57%	5.78%

Summary

Willis Towers Watson Public beats TWFG on 9 of the 11 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 Willis Towers Watson Public

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. It operates through two segments: Health, Wealth & Career and Risk & Broking. The company offers strategy and design consulting, plan management service and support, broking and administration services for health, wellbeing, and other group benefit program, including medical, dental, disability, life, voluntary benefits and other coverages; actuarial support, plan design, and administrative services for pension and retirement savings plans; retirement consulting services and solutions; and integrated solutions that consists of investment discretionary management, pension administration, core actuarial, and communication and change management assistance services. It also provides advice, data, software, and products to address clients' total rewards and talent issues; and risk advice, insurance brokerage, and consulting services in the areas of property and casualty, affinity, risk and analytics, aerospace, construction, global markets direct & facultative, financial, executive and professional risks, financial solutions, crisis management, surety, marine, and natural resources. In addition, the company offers integrated solutions that consists of investment discretionary management, pension administration, core actuarial, and communication and change management assistance services; and software and technology, risk and capital management, products and product pricing, financial and regulatory reporting, financial and capital modeling, M&A, outsourcing, and business management services. The company was formerly known as Willis Group Holdings Public Limited Company and changed its name to Willis Towers Watson Public Limited Company in January 2016. Willis Towers Watson Public Limited Company was founded in 1828 and is based in London, the United Kingdom.