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

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

Analyst Ratings

This is a breakdown of current ratings and target prices for GoHealth and TWFG, as reported by MarketBeat.

	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 presently has a consensus price target of $13.00, suggesting a potential downside of 2.84%. TWFG has a consensus price target of $31.14, suggesting a potential upside of 5.86%. Given TWFG’s stronger consensus rating and higher possible upside, analysts clearly believe TWFG is more favorable than GoHealth.

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 & Earnings

This table compares GoHealth and TWFG”s top-line 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)	-3.82
TWFG	$185.45 million	2.35	$26.10 million	N/A	N/A

TWFG has lower revenue, but higher earnings than GoHealth.

Institutional and Insider Ownership

24.2% of GoHealth shares are owned by institutional investors. 35.0% of GoHealth shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

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.