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. is the larger, with a market value of $1.1B against $998.3M — 1.1× the size. Heritage Insurance Holdings, Inc. trades at the lower P/E: 4.8× against 19.1×. Bowhead Specialty Holdings Inc. grew revenue faster over the last twelve months: 23.8% against 1.54%. Heritage Insurance Holdings, Inc. has the higher net margin (25.2% vs 9.32%) and the higher return on invested capital (489.1% vs 16.5%). 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 19.05 4.78 12.17
P/S 1.75 1.18 1.26
P/B 2.49 1.78 1.85
Price to free cash flow 2.77 3.36 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.25% 20.91% 8.20%
Free cash flow yield 36.13% 29.77% 11.86%

Profitability

Metric BOW HRTG Insurance Property & Casualty median
Gross margin 29.81% 45.39% 37.39%
Operating margin 13.36% 34.46% 14.67%
Net margin 9.32% 25.19% 10.16%
Free cash flow margin 63.24% 35.21% 18.60%
Return on equity 13.60% 45.27% 16.59%
Return on assets 2.42% 8.63% 3.38%
Return on invested capital 16.51% 489.08% 9.43%

Growth

Metric BOW HRTG Insurance Property & Casualty median
Revenue growth (TTM) 23.83% 1.54% 5.70%
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 0.33 0.13 0.25
Current ratio 0.50 0.83 0.49
Net debt to EBITDA (1.19) (1.77) 0.08

Dividend

Metric BOW HRTG Insurance Property & Casualty median
Dividend yield — — 1.56%
Payout ratio — — 0.15

Size

Metric BOW HRTG Insurance Property & Casualty median
Market cap 1.13b 998.32m 2.64b

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