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

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

Analyst Ratings

This is a breakdown of recent recommendations for GoHealth and TWFG, as provided 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 target price of $13.00, indicating a potential downside of 2.84%. TWFG has a consensus target price of $31.14, indicating 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.

Valuation and 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 & Insider Ownership

24.2% of GoHealth shares are held by institutional investors. 35.0% of GoHealth 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.

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

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.