Financial Review: International General Insurance (NASDAQ:IGIC) and TWFG (NASDAQ:TWFG)

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

Analyst Ratings

This is a summary of recent ratings for International General Insurance and TWFG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International General Insurance	0	0	2	0	3.00
TWFG	1	4	3	0	2.25

International General Insurance currently has a consensus price target of $28.00, suggesting a potential upside of 20.90%. TWFG has a consensus price target of $30.00, suggesting a potential upside of 71.14%. Given TWFG’s higher possible upside, analysts clearly believe TWFG is more favorable than International General Insurance.

Insider and Institutional Ownership

54.2% of International General Insurance shares are owned by institutional investors. 20.1% of International General Insurance shares are owned by company insiders. Comparatively, 66.5% of TWFG shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares International General Insurance and TWFG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International General Insurance	24.61%	16.98%	5.45%
TWFG	3.11%	13.51%	11.06%

Volatility and Risk

International General Insurance has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, TWFG has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Earnings and Valuation

This table compares International General Insurance and TWFG”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International General Insurance	$516.90 million	2.00	$127.20 million	$2.87	8.07
TWFG	$247.08 million	3.99	$7.96 million	$0.51	34.37

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

About International General Insurance

International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, motor, marine liability, contingency, marine, treaty, and casualty insurance and reinsurance. The company was founded in 2001 and is based in Amman, Jordan.

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.