Critical Survey: Fidelity National Financial (NYSE:FNF) and TWFG (NASDAQ:TWFG)

TWFG (NASDAQ:TWFG) and Fidelity National Financial (NYSE:FNF) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for TWFG and Fidelity National Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	0	4	4	0	2.50
Fidelity National Financial	0	3	2	0	2.40

TWFG currently has a consensus price target of $29.57, suggesting a potential upside of 22.40%. Fidelity National Financial has a consensus price target of $56.00, suggesting a potential upside of 36.14%. Given Fidelity National Financial’s higher probable upside, analysts plainly believe Fidelity National Financial is more favorable than TWFG.

Profitability

This table compares TWFG and Fidelity National Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TWFG	2.90%	19.49%	15.20%
Fidelity National Financial	5.03%	16.07%	1.30%

Insider & Institutional Ownership

81.2% of Fidelity National Financial shares are held by institutional investors. 68.4% of TWFG shares are held by insiders. Comparatively, 5.7% of Fidelity National Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares TWFG and Fidelity National Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$247.08 million	5.29	$7.96 million	$0.59	40.95
Fidelity National Financial	$14.45 billion	0.76	$602.00 million	$2.83	14.54

Fidelity National Financial has higher revenue and earnings than TWFG. Fidelity National Financial is trading at a lower price-to-earnings ratio than TWFG, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

TWFG has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Fidelity National Financial has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

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.

About Fidelity National Financial

Fidelity National Financial, Inc., together with its subsidiaries, provides various insurance products in the United States. The company operates through Title, F&G, and Corporate and Other segments. It offers title insurance, escrow, and other title related services, including trust activities, trustee sales guarantees, recordings and reconveyances, and home warranty products. The company also provides technology and transaction services to the real estate and mortgage industries; and mortgage transaction services, including title-related services and facilitation of production and management of mortgage loans. In addition, it offers annuity and life insurance products, such as deferred and immediate annuities, as well as indexed universal life insurance products; and funding agreements and pension risk transfer (PRT) solutions. Further, the company engages in the real estate brokerage business. Fidelity National Financial, Inc. was incorporated in 2005 and is headquartered in Jacksonville, Florida.