Contrasting TWFG (NASDAQ:TWFG) and GoHealth (NASDAQ:GOCO)

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoHealth	$686.46 million	0.45	-$63.26 million	($3.50)	-3.83
TWFG	$185.45 million	2.46	$26.10 million	N/A	N/A

TWFG has lower revenue, but higher earnings than GoHealth.

Analyst Ratings

This is a breakdown of recent recommendations for GoHealth and TWFG, as provided by MarketBeat.com.

	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 target price of $13.00, suggesting a potential downside of 2.91%. TWFG has a consensus target price of $31.14, suggesting a potential upside of 1.11%. Given TWFG’s stronger consensus rating and higher possible upside, analysts plainly believe TWFG is more favorable than GoHealth.

Insider and Institutional Ownership

24.2% of GoHealth shares are held by institutional investors. 35.0% of GoHealth shares are held by company 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.

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.