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 $782.6M — 1.4× the size. Root, Inc. trades at the lower P/E: 13.6× against 18.5×. 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 18 metrics below, Root, Inc. leads on 10 and Bowhead Specialty Holdings Inc. on 8.

Valuation

Metric BOW ROOT Insurance Property & Casualty median
P/E 18.48 13.60 10.75
P/S 1.83 0.51 1.21
P/B 2.38 2.42 1.99
Price to free cash flow 3.42 4.45 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.41% 7.35% 9.08%
Free cash flow yield 29.24% 22.45% 12.11%

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% 17.46%
Return on equity 14.14% 20.34% 17.34%
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% 8.02%
EPS growth (last fiscal year) 23.26% 28.96% 39.61%
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 — — 1.50%
Payout ratio — — 0.14

Size

Metric BOW ROOT Insurance Property & Casualty median
Market cap 1.12b 782.56m 2.67b

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