Reviewing Goosehead Insurance (NASDAQ:GSHD) and The Baldwin Insurance Group (NASDAQ:BWIN)

Goosehead Insurance (NASDAQ:GSHD) and The Baldwin Insurance Group (NASDAQ:BWIN) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Earnings & Valuation

This table compares Goosehead Insurance and The Baldwin Insurance Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Goosehead Insurance	$314.51 million	13.62	$14.14 million	$1.15	100.38
The Baldwin Insurance Group	$1.38 billion	3.33	-$90.14 million	($0.39)	-99.95

Goosehead Insurance has higher earnings, but lower revenue than The Baldwin Insurance Group. The Baldwin Insurance Group is trading at a lower price-to-earnings ratio than Goosehead Insurance, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Goosehead Insurance and The Baldwin Insurance Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goosehead Insurance	1	4	5	0	2.40
The Baldwin Insurance Group	1	1	4	1	2.71

Goosehead Insurance currently has a consensus price target of $109.10, suggesting a potential downside of 5.49%. The Baldwin Insurance Group has a consensus price target of $43.50, suggesting a potential upside of 11.60%. Given The Baldwin Insurance Group’s stronger consensus rating and higher possible upside, analysts plainly believe The Baldwin Insurance Group is more favorable than Goosehead Insurance.

Profitability

This table compares Goosehead Insurance and The Baldwin Insurance Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Goosehead Insurance	6.77%	284.41%	5.53%
The Baldwin Insurance Group	-2.89%	10.57%	3.10%

Volatility & Risk

Goosehead Insurance has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, The Baldwin Insurance Group has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Institutional and Insider Ownership

77.5% of The Baldwin Insurance Group shares are held by institutional investors. 48.3% of Goosehead Insurance shares are held by company insiders. Comparatively, 20.1% of The Baldwin Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Goosehead Insurance beats The Baldwin Insurance Group on 9 of the 15 factors compared between the two stocks.

About Goosehead Insurance

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.

About The Baldwin Insurance Group

The Baldwin Insurance Group, Inc. operates as an independent insurance distribution firm that delivers insurance and risk management solutions in the United States. It operates through three segments: Insurance Advisory Solutions; Underwriting, Capacity & Technology Solutions; and Mainstreet Insurance Solutions. The Insurance Advisory Solutions segment provides commercial risk management, employee benefits, and private risk management solutions for businesses and high-net-worth individuals, as well as their families. The Underwriting, Capacity & Technology Solutions segment offers Future platform, that manufactures technology-enabled insurance products suite comprises personal, commercial, and specialty lines; specialty wholesale broker business that delivers professionals, individuals, and niche industry businesses; and reinsurance brokerage services. The Mainstreet Insurance Solutions segment provides personal insurance, commercial insurance, and life and health solutions to individuals and businesses in communities. The company was formerly known as BRP Group, Inc. and changed its name to The Baldwin Insurance Group, Inc. in May 2024. The Baldwin Insurance Group, Inc. was founded in 2011 and is headquartered in Tampa, Florida.