Bowhead Specialty Holdings Inc. (BOW) vs Heritage Insurance Holdings, Inc. (HRTG)

Bowhead Specialty Holdings Inc. and Heritage Insurance Holdings, Inc. are both Insurance Property & Casualty companies. Bowhead Specialty Holdings Inc. and Heritage Insurance Holdings, Inc. are of similar size ($1.1B and $1.1B). Heritage Insurance Holdings, Inc. trades at the lower P/E: 5.1× against 18.5×. Bowhead Specialty Holdings Inc. grew revenue faster over the last twelve months: 25.0% against 1.54%. Heritage Insurance Holdings, Inc. has the higher net margin (25.2% vs 10.1%) and the higher return on invested capital (489.1% vs 11.4%). Across the 18 metrics below, Heritage Insurance Holdings, Inc. leads on 14 and Bowhead Specialty Holdings Inc. on 4.

Valuation

Metric BOW HRTG Insurance Property & Casualty median
P/E 18.48 5.08 10.75
P/S 1.83 1.26 1.21
P/B 2.38 1.89 1.99
Price to free cash flow 3.42 3.57 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.41% 19.68% 9.08%
Free cash flow yield 29.24% 28.03% 12.11%

Profitability

Metric BOW HRTG Insurance Property & Casualty median
Gross margin 30.51% 45.39% 41.16%
Operating margin 13.50% 34.46% 15.09%
Net margin 10.11% 25.19% 11.51%
Free cash flow margin 53.45% 35.21% 17.46%
Return on equity 14.14% 45.27% 17.34%
Return on assets 2.69% 8.63% 3.74%
Return on invested capital 11.43% 489.08% 12.06%

Growth

Metric BOW HRTG Insurance Property & Casualty median
Revenue growth (TTM) 25.02% 1.54% 8.02%
EPS growth (last fiscal year) 23.26% 214.43% 39.61%
Revenue growth, 5-year CAGR — 7.38% 9.23%
Net income growth, 5-year CAGR — 83.79% 10.09%

Health

Metric BOW HRTG Insurance Property & Casualty median
Debt to equity 0.31 0.13 0.25
Current ratio 0.48 0.83 0.42
Net debt to EBITDA (1.19) (1.77) 0.08

Dividend

Metric BOW HRTG Insurance Property & Casualty median
Dividend yield — — 1.50%
Payout ratio — — 0.14

Size

Metric BOW HRTG Insurance Property & Casualty median
Market cap 1.12b 1.09b 2.67b

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