Goosehead Insurance (GSHD) vs TWFG, Inc. (TWFG)

Goosehead Insurance and TWFG, Inc. are both Insurance Brokers companies. Goosehead Insurance is the larger, with a market value of $1.6B against $1.4B — 1.2× the size. Goosehead Insurance trades at the lower P/E: 32.4× against 43.0×. TWFG, Inc. grew revenue faster over the last twelve months: 34.7% against 17.7%. Goosehead Insurance has the higher net margin (8.78% vs 2.98%) and the higher return on invested capital (59.6% vs 19.3%). Across the 16 metrics below, Goosehead Insurance leads on 10 and TWFG, Inc. on 6.

Valuation

Metric GSHD TWFG Insurance Brokers median
P/E 32.45 43.00 25.24
P/S 2.74 1.13 2.73
P/B n/m 1.26 2.91
Price to free cash flow 17.99 n/m 20.97
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 3.08% 2.33% 2.41%
Free cash flow yield 5.56% (2.47%) 2.15%

Profitability

Metric GSHD TWFG Insurance Brokers median
Gross margin 100.00% 50.10% 42.95%
Operating margin 23.31% 18.26% 15.37%
Net margin 8.78% 2.98% 8.77%
Free cash flow margin 15.21% (2.78%) 3.89%
Return on equity (22.12%) 3.24% 0.00%
Return on assets 8.37% 2.51% 2.23%
Return on invested capital 59.58% 19.32% 5.27%

Growth

Metric GSHD TWFG Insurance Brokers median
Revenue growth (TTM) 17.74% 34.74% 7.09%
EPS growth (last fiscal year) (9.57%) 168.42% (9.12%)
Revenue growth, 5-year CAGR 25.57% — 9.30%
Net income growth, 5-year CAGR 24.55% — 0.00%

Health

Metric GSHD TWFG Insurance Brokers median
Debt to equity (1.67) 0.01 0.19
Current ratio 1.54 76.79 1.55
Net debt to EBITDA 2.90 (2.96) 0.89

Dividend

Metric GSHD TWFG Insurance Brokers median
Dividend yield 0.00% — 1.08%
Payout ratio 0.00 — 0.23

Size

Metric GSHD TWFG Insurance Brokers median
Market cap 1.62b 1.35b 1.49b

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