Bowhead Specialty Holdings Inc. (BOW) vs Safety Insurance Group, Inc. (SAFT)

Bowhead Specialty Holdings Inc. and Safety Insurance Group, Inc. are both Insurance Property & Casualty companies. Safety Insurance Group, Inc. is the larger, with a market value of $1.5B against $1.1B — 1.4× the size. Bowhead Specialty Holdings Inc. trades at the lower P/E: 18.5× against 22.4×. Bowhead Specialty Holdings Inc. grew revenue faster over the last twelve months: 25.0% against 7.21%. Bowhead Specialty Holdings Inc. has the higher net margin (10.1% vs 5.33%) and the higher return on invested capital (11.4% vs 6.55%). Across the 18 metrics below, Bowhead Specialty Holdings Inc. leads on 13 and Safety Insurance Group, Inc. on 5.

Valuation

Metric BOW SAFT Insurance Property & Casualty median
P/E 18.48 22.37 10.75
P/S 1.83 1.17 1.21
P/B 2.38 1.72 1.99
Price to free cash flow 3.42 8.60 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.41% 4.47% 9.08%
Free cash flow yield 29.24% 11.63% 12.11%

Profitability

Metric BOW SAFT Insurance Property & Casualty median
Gross margin 30.51% 7.63% 41.16%
Operating margin 13.50% 6.99% 15.09%
Net margin 10.11% 5.33% 11.51%
Free cash flow margin 53.45% 13.66% 17.46%
Return on equity 14.14% 7.84% 17.34%
Return on assets 2.69% 2.82% 3.74%
Return on invested capital 11.43% 6.55% 12.06%

Growth

Metric BOW SAFT Insurance Property & Casualty median
Revenue growth (TTM) 25.02% 7.21% 8.02%
EPS growth (last fiscal year) 23.26% 40.17% 39.61%
Revenue growth, 5-year CAGR — 8.35% 9.23%
Net income growth, 5-year CAGR — (6.41%) 10.09%

Health

Metric BOW SAFT Insurance Property & Casualty median
Debt to equity 0.31 0.06 0.25
Current ratio 0.48 0.40 0.42
Net debt to EBITDA (1.19) (0.18) 0.08

Dividend

Metric BOW SAFT Insurance Property & Casualty median
Dividend yield — 3.54% 1.50%
Payout ratio — 0.79 0.14

Size

Metric BOW SAFT Insurance Property & Casualty median
Market cap 1.12b 1.53b 2.67b

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