Analyzing TWFG (NASDAQ:TWFG) & Kingstone Companies (NASDAQ:KINS)

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

Valuation & Earnings

This table compares Kingstone Companies 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
Kingstone Companies	$214.87 million	1.25	$40.77 million	$2.42	7.68
TWFG	$247.08 million	5.48	$7.96 million	$0.59	42.42

Kingstone Companies has higher earnings, but lower revenue than TWFG. Kingstone Companies is trading at a lower price-to-earnings ratio than TWFG, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kingstone Companies and TWFG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingstone Companies	14.85%	30.78%	7.99%
TWFG	2.90%	19.49%	15.20%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Kingstone Companies and TWFG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingstone Companies	0	1	1	0	2.50
TWFG	0	4	4	0	2.50

TWFG has a consensus price target of $29.29, indicating a potential upside of 17.00%. Given TWFG’s higher possible upside, analysts plainly believe TWFG is more favorable than Kingstone Companies.

Volatility & Risk

Kingstone Companies has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, TWFG has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Insider & Institutional Ownership

14.9% of Kingstone Companies shares are owned by institutional investors. 4.3% of Kingstone Companies shares are owned by company insiders. Comparatively, 68.4% of TWFG shares are owned 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.

Summary

TWFG beats Kingstone Companies on 7 of the 13 factors compared between the two stocks.

About Kingstone Companies

Kingstone Companies, Inc., through its subsidiary, provides property and casualty insurance products to individuals in the United States. It offers personal line of insurance products, such as homeowners and dwelling fire, cooperative/condominiums, renters, and personal umbrella policies. The company also provides for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies. In addition, it offers reinsurance products. The company underwrites its products through retail and wholesale agents and brokers. The company was formerly known as DCAP Group, Inc. and changed its name to Kingstone Companies, Inc. in July 2009. Kingstone Companies, Inc. was founded in 1886 and is headquartered in Kingston, New York.

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.