Bowhead Specialty Holdings Inc. (BOW) vs Root, Inc. (ROOT)

Bowhead Specialty Holdings Inc. and Root, Inc. are both Insurance Property & Casualty companies. Bowhead Specialty Holdings Inc. is the larger, with a market value of $1.1B against $750.2M — 1.5× the size. Root, Inc. trades at the lower P/E: 12.8× against 18.3×. Bowhead Specialty Holdings Inc. grew revenue faster over the last twelve months: 25.0% against 14.9%. Bowhead Specialty Holdings Inc. has the higher net margin (10.1% vs 3.71%) and the lower return on invested capital (11.4% vs 85.8%). Across the 20 metrics below, Root, Inc. leads on 13 and Bowhead Specialty Holdings Inc. on 7.

Valuation

Metric BOW ROOT Insurance Property & Casualty median
P/E 18.29 12.78 10.29
P/S 1.81 0.47 1.17
P/B 2.36 2.27 1.83
Price to free cash flow 3.38 4.18 7.48
EV/EBITDA 12.96 3.68 7.49
EV/Sales 1.78 0.23 1.13
Earnings yield 5.47% 7.83% 9.50%
Free cash flow yield 29.55% 23.91% 13.29%

Profitability

Metric BOW ROOT Insurance Property & Casualty median
Gross margin 30.51% 39.30% 41.16%
Operating margin 13.50% 5.51% 15.09%
Net margin 10.11% 3.71% 11.51%
Free cash flow margin 53.45% 11.43% 17.59%
Return on equity 14.14% 20.34% 18.19%
Return on assets 2.69% 3.57% 3.74%
Return on invested capital 11.43% 85.75% 12.06%

Growth

Metric BOW ROOT Insurance Property & Casualty median
Revenue growth (TTM) 25.02% 14.86% 8.69%
EPS growth (last fiscal year) 23.26% 28.96% —
Revenue growth, 5-year CAGR — 34.33% 9.23%
Net income growth, 5-year CAGR — 0.00% 10.09%

Health

Metric BOW ROOT Insurance Property & Casualty median
Debt to equity 0.31 0.45 0.25
Current ratio 0.48 1.01 0.42
Net debt to EBITDA (1.19) (6.65) 0.08

Dividend

Metric BOW ROOT Insurance Property & Casualty median
Dividend yield — — 2.79%
Payout ratio — 0.00 0.27

Size

Metric BOW ROOT Insurance Property & Casualty median
Market cap 1.12b 750.15m 2.44b

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