LendingTree, Inc. (TREE) vs TWFG, Inc. (TWFG)

LendingTree, Inc. and TWFG, Inc. are both Insurance Brokers companies. TWFG, Inc. is the larger, with a market value of $1.5B against $392.3M — 3.7× the size. LendingTree, Inc. trades at the lower P/E: 2.0× against 48.4×. TWFG, Inc. grew revenue faster over the last twelve months: 34.7% against 25.3%. LendingTree, Inc. has the higher net margin (14.3% vs 2.98%) and the lower return on invested capital (10.8% vs 19.3%). Across the 17 metrics below, LendingTree, Inc. leads on 11 and TWFG, Inc. on 6.

Valuation

Metric TREE TWFG Insurance Brokers median
P/E 2.04 48.39 25.10
P/S 0.30 1.27 2.98
P/B 1.17 1.42 3.18
Price to free cash flow 4.93 n/m 22.89
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 49.05% 2.07% 2.74%
Free cash flow yield 20.28% (2.19%) 3.19%

Profitability

Metric TREE TWFG Insurance Brokers median
Gross margin 96.41% 50.10% 49.44%
Operating margin 8.19% 18.26% 15.48%
Net margin 14.32% 2.98% 8.78%
Free cash flow margin 6.02% (2.78%) 5.26%
Return on equity 82.78% 3.24% 3.24%
Return on assets 20.79% 2.51% 2.51%
Return on invested capital 10.82% 19.32% 5.83%

Growth

Metric TREE TWFG Insurance Brokers median
Revenue growth (TTM) 25.29% 34.74% 9.77%
EPS growth (last fiscal year) 443.31% 168.42% (8.67%)
Revenue growth, 5-year CAGR 4.19% — 9.30%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric TREE TWFG Insurance Brokers median
Debt to equity 1.22 0.01 0.49
Current ratio 1.85 76.79 1.60
Net debt to EBITDA 3.51 (2.96) 1.20

Dividend

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

Size

Metric TREE TWFG Insurance Brokers median
Market cap 392.27m 1.46b 2.82b

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