Head to Head Contrast: TWFG (NASDAQ:TWFG) vs. Arthur J. Gallagher & Co. (NYSE:AJG)

by · The Cerbat Gem

Arthur J. Gallagher & Co. (NYSE:AJGGet Free Report) and TWFG (NASDAQ:TWFGGet Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Analyst Ratings

This is a summary of current ratings and target prices for Arthur J. Gallagher & Co. and TWFG, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Arthur J. Gallagher & Co.37402.07
TWFG03602.67

Arthur J. Gallagher & Co. presently has a consensus price target of $287.00, indicating a potential upside of 0.46%. TWFG has a consensus price target of $27.86, indicating a potential downside of 4.47%. Given Arthur J. Gallagher & Co.’s higher probable upside, equities analysts plainly believe Arthur J. Gallagher & Co. is more favorable than TWFG.

Profitability

This table compares Arthur J. Gallagher & Co. and TWFG’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Arthur J. Gallagher & Co.10.41%19.25%3.72%
TWFGN/AN/AN/A

Institutional and Insider Ownership

85.5% of Arthur J. Gallagher & Co. shares are held by institutional investors. 1.6% of Arthur J. Gallagher & Co. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Arthur J. Gallagher & Co. and TWFG”s gross revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Arthur J. Gallagher & Co.$10.96 billion5.70$969.50 million$4.9457.83
TWFG$180.42 million2.13$26.10 millionN/AN/A

Arthur J. Gallagher & Co. has higher revenue and earnings than TWFG.

Summary

Arthur J. Gallagher & Co. beats TWFG on 9 of the 11 factors compared between the two stocks.

About Arthur J. Gallagher & Co.

(Get Free Report)

Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. It operates in Brokerage and Risk Management segments. The Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises. This segment performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers services in the areas of insurance and reinsurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent brokers and consultants. It serves commercial, industrial, public, religious, and nonprofit entities, as well as underwriting enterprises. Arthur J. Gallagher & Co. was founded in 1927 and is headquartered in Rolling Meadows, Illinois.

About TWFG

(Get Free Report)

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.