Contrasting TWFG (NASDAQ:TWFG) & eHealth (NASDAQ:EHTH)

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

Analyst Ratings

This is a summary of recent ratings and price targets for eHealth and TWFG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eHealth	0	2	0	0	2.00
TWFG	0	3	6	0	2.67

eHealth currently has a consensus target price of $3.50, indicating a potential downside of 22.74%. TWFG has a consensus target price of $27.86, indicating a potential downside of 6.11%. Given TWFG’s stronger consensus rating and higher probable upside, analysts clearly believe TWFG is more favorable than eHealth.

Earnings and Valuation

This table compares eHealth and TWFG”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eHealth	$452.87 million	0.29	-$28.21 million	($2.70)	-1.68
TWFG	$180.42 million	2.16	$26.10 million	N/A	N/A

TWFG has lower revenue, but higher earnings than eHealth.

Institutional and Insider Ownership

79.5% of eHealth shares are held by institutional investors. 4.1% of eHealth shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares eHealth and TWFG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eHealth	-6.32%	-4.03%	-2.17%
TWFG	N/A	N/A	N/A

Summary

TWFG beats eHealth on 8 of the 11 factors compared between the two stocks.

About eHealth

eHealth, Inc. operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States. The company operates in two segments, Medicare; and Employer and Individual. The Medicare segment offers sale of Medicare-related health insurance plans, which includes Medicare advantage, Medicare Supplement, and Medicare Part D prescription drug plans to Medicare-eligible customers including but not limited to, dental, and vision insurance, as well as advertising program for marketing and other services. The Employer and Individual segment engages in the sale of individual, family, and small business health insurance plans; and ancillary products to non-Medicare-eligible customers including but not limited to, dental, vision, and short and long term disability insurance. In addition, the company provides ecommerce platforms and consumer engagement solutions, which includes market leading information, decision support, customer engagement, and transactional services to group of health insurance consumers; and organize and present the insurance information in objective format to individuals, families, and small businesses to research, analyze, compare and purchase health insurance plans. Further, it markets health insurance plans through its websites, including eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, PlanPrescriber.com, and GoMedigap.com. The company also offers online sponsorship and advertising, non-broker of record, lead referral, technology licensing, as well as performs various post-enrollment services for members in Medicare health insurance plans. eHealth, Inc. was incorporated in 1997 and is headquartered in Austin, Texas.

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.