TWFG (NASDAQ:TWFG) and Safety Insurance Group (NASDAQ:SAFT) Head to Head Comparison

Safety Insurance Group (NASDAQ:SAFT) and TWFG (NASDAQ:TWFG) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Valuation & Earnings

This table compares Safety Insurance Group and TWFG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safety Insurance Group	$1.26 billion	1.20	$99.25 million	$4.64	22.31
TWFG	$247.08 million	5.97	$7.96 million	$0.59	46.24

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

Institutional and Insider Ownership

81.0% of Safety Insurance Group shares are held by institutional investors. 2.2% of Safety Insurance Group shares are held by company insiders. Comparatively, 68.4% of TWFG shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Safety Insurance Group and TWFG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safety Insurance Group	0	1	1	0	2.50
TWFG	0	4	4	0	2.50

TWFG has a consensus target price of $29.57, suggesting a potential upside of 8.40%. Given TWFG’s higher probable upside, analysts clearly believe TWFG is more favorable than Safety Insurance Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Safety Insurance Group	5.33%	7.23%	2.58%
TWFG	2.90%	19.49%	15.20%

Volatility and Risk

Safety Insurance Group has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, TWFG has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Summary

TWFG beats Safety Insurance Group on 8 of the 13 factors compared between the two stocks.

About Safety Insurance Group

Safety Insurance Group, Inc. provides private passenger and commercial automobile, and homeowner insurance in the United States. The company’s private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured’s car occupants, and physical damage coverage for an insured’s own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner’s insurance policies; and commercial umbrella, which offers an excess liability product to clients, as well as underwrites dwelling fire insurance for non-owner-occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies, and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. Safety Insurance Group, Inc. was founded in 1979 and is headquartered in Boston, Massachusetts.

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.