Financial Analysis: Bowhead Specialty (BOW) & Its Competitors

Bowhead Specialty (NYSE:BOW) is one of 311 publicly-traded companies in the “Insurance” industry, but how does it contrast to its rivals? We will compare Bowhead Specialty to related companies based on the strength of its institutional ownership, profitability, analyst recommendations, earnings, valuation, dividends and risk.

Valuation and Earnings

This table compares Bowhead Specialty and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bowhead Specialty	$551.59 million	$53.79 million	18.45
Bowhead Specialty Competitors	$15.39 billion	$1.70 billion	34.74

Bowhead Specialty’s rivals have higher revenue and earnings than Bowhead Specialty. Bowhead Specialty is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Bowhead Specialty and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bowhead Specialty	10.11%	14.05%	2.64%
Bowhead Specialty Competitors	9.12%	-9.91%	4.08%

Risk and Volatility

Bowhead Specialty has a beta of -0.06, indicating that its stock price is 106% less volatile than the S&P 500. Comparatively, Bowhead Specialty’s rivals have a beta of -1.59, indicating that their average stock price is 259% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Bowhead Specialty and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bowhead Specialty	0	8	2	0	2.20
Bowhead Specialty Competitors	3323	15642	16483	738	2.40

Bowhead Specialty currently has a consensus price target of $33.50, indicating a potential downside of 1.86%. As a group, “Insurance” companies have a potential upside of 5.10%. Given Bowhead Specialty’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Bowhead Specialty has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

55.8% of shares of all “Insurance” companies are held by institutional investors. 4.2% of Bowhead Specialty shares are held by company insiders. Comparatively, 13.5% of shares of all “Insurance” companies are held by company 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.

Summary

Bowhead Specialty rivals beat Bowhead Specialty on 10 of the 13 factors compared.

About Bowhead Specialty

Bowhead Specialty Holdings Inc. provides specialty property and casualty insurance products in the United States. It underwrites casualty insurance solutions for risks in the construction, distribution, heavy manufacturing, real estate, and hospitality segments; professional liability insurance solutions for financial institutions, private and public directors and officers liability insurance, errors and omissions liability insurance, and cyber segments; and healthcare solutions for hospitals, senior care providers, managed care organizations, miscellaneous medical facilities, and healthcare management liability segments. The company distributes its products through distribution partners in wholesale and retail markets. Bowhead Specialty Holdings Inc. was formerly known as Bowhead Holdings Inc. and changed its name to Bowhead Specialty Holdings Inc. in March 2024. The company was founded in 2020 and is based in New York, New York. Bowhead Specialty Holdings Inc. operates as a subsidiary of Bowhead Insurance Holdings LP.