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: 18.3× against 22.3×. 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 20 metrics below, Bowhead Specialty Holdings Inc. leads on 14 and Safety Insurance Group, Inc. on 6.

Valuation

Metric BOW SAFT Insurance Property & Casualty median
P/E 18.29 22.26 10.29
P/S 1.81 1.17 1.17
P/B 2.36 1.71 1.83
Price to free cash flow 3.38 8.55 7.48
EV/EBITDA 12.96 16.19 7.49
EV/Sales 1.78 1.18 1.13
Earnings yield 5.47% 4.49% 9.50%
Free cash flow yield 29.55% 11.69% 13.29%

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% 17.59%
Return on equity 14.14% 7.84% 18.19%
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% 8.69%
EPS growth (last fiscal year) 23.26% 40.17% —
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 — 4.37% 2.79%
Payout ratio — 1.50 0.27

Size

Metric BOW SAFT Insurance Property & Casualty median
Market cap 1.12b 1.52b 2.44b

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