Equitable (NYSE:EQH) versus TWFG (NASDAQ:TWFG) Financial Analysis

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

Profitability

This table compares Equitable and TWFG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equitable	-2.64%	76.47%	0.68%
TWFG	N/A	N/A	N/A

Earnings & Valuation

This table compares Equitable and TWFG”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equitable	$10.53 billion	1.39	$1.30 billion	($1.09)	-42.76
TWFG	$172.93 million	2.76	$26.10 million	N/A	N/A

Equitable has higher revenue and earnings than TWFG.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Equitable and TWFG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equitable	0	3	7	0	2.70
TWFG	0	3	6	0	2.67

Equitable presently has a consensus target price of $48.70, suggesting a potential upside of 4.48%. TWFG has a consensus target price of $30.43, suggesting a potential downside of 5.68%. Given Equitable’s stronger consensus rating and higher probable upside, analysts clearly believe Equitable is more favorable than TWFG.

Institutional & Insider Ownership

92.7% of Equitable shares are held by institutional investors. 1.1% of Equitable shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Equitable beats TWFG on 9 of the 11 factors compared between the two stocks.

About Equitable

Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related services to various clients through institutional. The Protection Solutions segment provides life insurance products, such as VUL insurance and IUL insurance, term life, and employee benefits business, such as dental, vision, life, as well as short- and long-term disability insurance products to small and medium-sized businesses. The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.

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.