Bowhead Specialty Holdings Inc. (BOW) vs Donegal Group, Inc. (DGICA)

Bowhead Specialty Holdings Inc. and Donegal Group, Inc. are both Insurance Property & Casualty companies. Bowhead Specialty Holdings Inc. is the larger, with a market value of $1.1B against $662.3M — 1.7× the size. Donegal Group, Inc. trades at the lower P/E: 9.2× against 18.3×. Bowhead Specialty Holdings Inc. grew revenue faster over the last twelve months: 25.0% against −3.14%. Bowhead Specialty Holdings Inc. has the higher net margin (10.1% vs 7.38%) and the higher return on invested capital (11.4% vs 8.21%). Across the 20 metrics below, Bowhead Specialty Holdings Inc. leads on 11 and Donegal Group, Inc. on 9.

Valuation

Metric BOW DGICA Insurance Property & Casualty median
P/E 18.29 9.23 10.29
P/S 1.81 0.70 1.17
P/B 2.36 1.01 1.83
Price to free cash flow 3.38 11.48 7.48
EV/EBITDA 12.96 7.44 7.49
EV/Sales 1.78 0.71 1.13
Earnings yield 5.47% 10.83% 9.50%
Free cash flow yield 29.55% 8.71% 13.29%

Profitability

Metric BOW DGICA Insurance Property & Casualty median
Gross margin 30.51% 24.57% 41.16%
Operating margin 13.50% 9.25% 15.09%
Net margin 10.11% 7.38% 11.51%
Free cash flow margin 53.45% 6.06% 17.59%
Return on equity 14.14% 11.18% 18.19%
Return on assets 2.69% 2.91% 3.74%
Return on invested capital 11.43% 8.21% 12.06%

Growth

Metric BOW DGICA Insurance Property & Casualty median
Revenue growth (TTM) 25.02% (3.14%) 8.69%
EPS growth (last fiscal year) 23.26% 42.48% —
Revenue growth, 5-year CAGR — 4.69% 9.23%
Net income growth, 5-year CAGR — 8.48% 10.09%

Health

Metric BOW DGICA Insurance Property & Casualty median
Debt to equity 0.31 0.05 0.25
Current ratio 0.48 0.37 0.42
Net debt to EBITDA (1.19) 0.08 0.08

Dividend

Metric BOW DGICA Insurance Property & Casualty median
Dividend yield — 4.70% 2.79%
Payout ratio — 6.45 0.27

Size

Metric BOW DGICA Insurance Property & Casualty median
Market cap 1.12b 662.34m 2.44b

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