Contrasting TWFG (NASDAQ:TWFG) & Horace Mann Educators (NYSE:HMN)

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

Analyst Recommendations

This is a breakdown of recent ratings for TWFG and Horace Mann Educators, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	1	3	3	1	2.50
Horace Mann Educators	0	1	2	1	3.00

TWFG currently has a consensus target price of $26.50, indicating a potential upside of 34.18%. Horace Mann Educators has a consensus target price of $47.33, indicating a potential upside of 4.85%. Given TWFG’s higher possible upside, equities research analysts clearly believe TWFG is more favorable than Horace Mann Educators.

Institutional and Insider Ownership

99.3% of Horace Mann Educators shares are held by institutional investors. 68.4% of TWFG shares are held by insiders. Comparatively, 3.8% of Horace Mann Educators shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

TWFG has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Horace Mann Educators has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$247.08 million	4.49	$7.96 million	$0.51	38.73
Horace Mann Educators	$1.70 billion	1.07	$162.10 million	$3.90	11.58

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

Profitability

This table compares TWFG and Horace Mann Educators’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TWFG	3.11%	13.51%	11.06%
Horace Mann Educators	9.53%	13.92%	1.31%

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 Horace Mann Educators

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. The company operates through Property & Casualty, Life & Retirement, and Supplemental & Group Benefits segments. Its Property & Casualty segment offers insurance products, including private passenger auto insurance, residential home insurance, and personal umbrella insurance; and provides auto coverages including liability and collision, and property coverage for homeowners and renters. The Life & Retirement segment markets tax-qualified fixed, fixed indexed, and variable annuities; and internal revenue code for educator, which allows public school employees and employees of other tax-exempt organizations, such as not-for-profit private schools, to utilize pretax income to make periodic contributions to a qualified retirement plan. The Supplemental & Group Benefits segment offers employer-sponsored products including accident, critical illness, limited-benefit fixed indemnity insurance, term life, and short-term and long-term disability, as well as worksite direct products, such as supplemental heart, cancer, disability, and accident coverage. The company was founded in 1945 and is headquartered in Springfield, Illinois.