Critical Comparison: Ryan Specialty (NYSE:RYAN) vs. TWFG (NASDAQ:TWFG)

Ryan Specialty (NYSE:RYAN) and TWFG (NASDAQ:TWFG) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ryan Specialty and TWFG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ryan Specialty	1	5	6	0	2.42
TWFG	0	4	5	0	2.56

Ryan Specialty currently has a consensus target price of $74.40, indicating a potential upside of 11.68%. TWFG has a consensus target price of $31.86, indicating a potential upside of 8.91%. Given Ryan Specialty’s higher probable upside, equities analysts plainly believe Ryan Specialty is more favorable than TWFG.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ryan Specialty	10.31%	47.90%	6.36%
TWFG	N/A	N/A	N/A

Valuation & Earnings

This table compares Ryan Specialty 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
Ryan Specialty	$2.08 billion	8.40	$61.04 million	$0.77	86.52
TWFG	$172.93 million	2.51	$26.10 million	N/A	N/A

Ryan Specialty has higher revenue and earnings than TWFG.

Insider and Institutional Ownership

84.8% of Ryan Specialty shares are held by institutional investors. 11.1% of Ryan Specialty shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Ryan Specialty beats TWFG on 10 of the 11 factors compared between the two stocks.

About Ryan Specialty

Ryan Specialty Holdings, Inc. operates as a service provider of specialty products and solutions for insurance brokers, agents, and carriers in the United States, Canada, the United Kingdom, Europe, and Singapore. It offers distribution, underwriting, product development, administration, and risk management services by acting as a wholesale broker and a managing underwriter. The company serves commercial, industrial, institutional, and government sectors. Ryan Specialty Holdings, Inc. was founded in 2010 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.