Comparing The Baldwin Insurance Group (NASDAQ:BWIN) & Goosehead Insurance (NASDAQ:GSHD)

Goosehead Insurance (NASDAQ:GSHD) and The Baldwin Insurance Group (NASDAQ:BWIN) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings for Goosehead Insurance and The Baldwin Insurance Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goosehead Insurance	1	4	5	0	2.40
The Baldwin Insurance Group	1	1	4	1	2.71

Goosehead Insurance presently has a consensus price target of $109.10, suggesting a potential downside of 5.49%. The Baldwin Insurance Group has a consensus price target of $43.50, suggesting a potential upside of 11.60%. Given The Baldwin Insurance Group’s stronger consensus rating and higher possible upside, analysts clearly believe The Baldwin Insurance Group is more favorable than Goosehead Insurance.

Profitability

This table compares Goosehead Insurance and The Baldwin Insurance Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Goosehead Insurance	6.77%	284.41%	5.53%
The Baldwin Insurance Group	-2.89%	10.57%	3.10%

Institutional & Insider Ownership

77.5% of The Baldwin Insurance Group shares are owned by institutional investors. 48.3% of Goosehead Insurance shares are owned by insiders. Comparatively, 20.1% of The Baldwin Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Goosehead Insurance and The Baldwin Insurance Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Goosehead Insurance	$314.51 million	13.62	$14.14 million	$1.15	100.38
The Baldwin Insurance Group	$1.38 billion	3.33	-$90.14 million	($0.39)	-99.95

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

Volatility & Risk

Goosehead Insurance has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, The Baldwin Insurance Group has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.

Summary

Goosehead Insurance beats The Baldwin Insurance Group on 9 of the 15 factors compared between the two stocks.

About Goosehead Insurance

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.

About The Baldwin Insurance Group

The Baldwin Insurance Group, Inc. operates as an independent insurance distribution firm that delivers insurance and risk management solutions in the United States. It operates through three segments: Insurance Advisory Solutions; Underwriting, Capacity & Technology Solutions; and Mainstreet Insurance Solutions. The Insurance Advisory Solutions segment provides commercial risk management, employee benefits, and private risk management solutions for businesses and high-net-worth individuals, as well as their families. The Underwriting, Capacity & Technology Solutions segment offers Future platform, that manufactures technology-enabled insurance products suite comprises personal, commercial, and specialty lines; specialty wholesale broker business that delivers professionals, individuals, and niche industry businesses; and reinsurance brokerage services. The Mainstreet Insurance Solutions segment provides personal insurance, commercial insurance, and life and health solutions to individuals and businesses in communities. The company was formerly known as BRP Group, Inc. and changed its name to The Baldwin Insurance Group, Inc. in May 2024. The Baldwin Insurance Group, Inc. was founded in 2011 and is headquartered in Tampa, Florida.