SelectQuote, Inc. (SLQT) vs TWFG, Inc. (TWFG)

SelectQuote, Inc. and TWFG, Inc. are both Insurance Brokers companies. TWFG, Inc. is the larger, with a market value of $1.5B against $64.0M — 22.8× the size. SelectQuote, Inc. has negative trailing earnings, so its P/E is not meaningful; TWFG, Inc. trades at 48.4×. TWFG, Inc. grew revenue faster over the last twelve months: 34.7% against 6.02%. TWFG, Inc. has the higher net margin (2.98% vs −0.72%) and the higher return on invested capital (19.3% vs 4.62%). Across the 16 metrics below, TWFG, Inc. leads on 12 and SelectQuote, Inc. on 4.

Valuation

Metric SLQT TWFG Insurance Brokers median
P/E n/m 48.39 25.10
P/S 0.05 1.27 2.98
P/B 0.21 1.42 3.18
Price to free cash flow 4.78 n/m 22.89
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (17.50%) 2.07% 2.74%
Free cash flow yield 20.91% (2.19%) 3.19%

Profitability

Metric SLQT TWFG Insurance Brokers median
Gross margin 35.56% 50.10% 49.44%
Operating margin 4.57% 18.26% 15.48%
Net margin (0.72%) 2.98% 8.78%
Free cash flow margin 0.97% (2.78%) 5.26%
Return on equity (3.31%) 3.24% 3.24%
Return on assets (0.92%) 2.51% 2.51%
Return on invested capital 4.62% 19.32% 5.83%

Growth

Metric SLQT TWFG Insurance Brokers median
Revenue growth (TTM) 6.02% 34.74% 9.77%
EPS growth (last fiscal year) (700.00%) 168.42% (8.67%)
Revenue growth, 5-year CAGR 11.72% — 9.30%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric SLQT TWFG Insurance Brokers median
Debt to equity 0.57 0.01 0.49
Current ratio 6.57 76.79 1.60
Net debt to EBITDA 3.65 (2.96) 1.20

Dividend

Metric SLQT TWFG Insurance Brokers median
Dividend yield — — 1.17%
Payout ratio — — 0.33

Size

Metric SLQT TWFG Insurance Brokers median
Market cap 64.00m 1.46b 2.82b

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