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 $986.5M — 1.1× the size. Heritage Insurance Holdings, Inc. trades at the lower P/E: 4.7× against 18.3×. 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 20 metrics below, Heritage Insurance Holdings, Inc. leads on 18 and Bowhead Specialty Holdings Inc. on 2.

Valuation

Metric BOW HRTG Insurance Property & Casualty median
P/E 18.29 4.73 10.29
P/S 1.81 1.17 1.17
P/B 2.36 1.76 1.83
Price to free cash flow 3.38 3.32 7.48
EV/EBITDA 12.96 1.53 7.49
EV/Sales 1.78 0.55 1.13
Earnings yield 5.47% 21.16% 9.50%
Free cash flow yield 29.55% 30.13% 13.29%

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% 17.59%
Return on equity 14.14% 45.27% 18.19%
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% 8.69%
EPS growth (last fiscal year) 23.26% 214.43% —
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 — 16.22% 2.79%
Payout ratio — 0.00 0.27

Size

Metric BOW HRTG Insurance Property & Casualty median
Market cap 1.12b 986.52m 2.44b

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