Financial Survey: Skyward Specialty Insurance Group (NASDAQ:SKWD) and Kinsale Capital Group (NYSE:KNSL)

Skyward Specialty Insurance Group (NASDAQ:SKWD) and Kinsale Capital Group (NYSE:KNSL) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Earnings & Valuation

This table compares Skyward Specialty Insurance Group and Kinsale Capital Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skyward Specialty Insurance Group	$1.15 billion	1.70	$118.83 million	$3.18	15.19
Kinsale Capital Group	$1.72 billion	6.20	$414.84 million	$19.17	23.91

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

Profitability

This table compares Skyward Specialty Insurance Group and Kinsale Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skyward Specialty Insurance Group	10.53%	16.40%	3.49%
Kinsale Capital Group	25.92%	25.93%	7.92%

Institutional and Insider Ownership

94.8% of Skyward Specialty Insurance Group shares are held by institutional investors. Comparatively, 85.4% of Kinsale Capital Group shares are held by institutional investors. 7.9% of Skyward Specialty Insurance Group shares are held by insiders. Comparatively, 5.5% of Kinsale Capital Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Skyward Specialty Insurance Group has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Kinsale Capital Group has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Skyward Specialty Insurance Group and Kinsale Capital Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyward Specialty Insurance Group	0	3	6	1	2.80
Kinsale Capital Group	0	7	4	0	2.36

Skyward Specialty Insurance Group currently has a consensus target price of $60.88, suggesting a potential upside of 26.04%. Kinsale Capital Group has a consensus target price of $505.80, suggesting a potential upside of 10.34%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Skyward Specialty Insurance Group is more favorable than Kinsale Capital Group.

Summary

Kinsale Capital Group beats Skyward Specialty Insurance Group on 9 of the 15 factors compared between the two stocks.

About Skyward Specialty Insurance Group

Skyward Specialty Insurance Group, Inc., an insurance holding company, underwrites commercial property and casualty insurance products in the United States. It offers general liability, excess liability, professional liability, commercial auto, group accident and health, property, surety, and workers' compensation insurance products. Skyward Specialty Insurance Group, Inc. was incorporated in 2006 and is headquartered in Houston, Texas.

About Kinsale Capital Group

Kinsale Capital Group, Inc., a specialty insurance company, engages in the provision of property and casualty insurance products in the United States. The company’s commercial lines offerings include commercial property, small business casualty and property, excess and general casualty, construction, allied health, life sciences, entertainment, energy, environmental, excess professional, health care, public entity, commercial auto, inland marine, aviation, ocean marine, product recall, and railroad, as well as product, professional, and management liability insurance. It markets and sells its insurance products in all 50 states, the District of Columbia, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands primarily through a network of independent insurance brokers. The company was founded in 2009 and is headquartered in Richmond, Virginia.