Bowhead Specialty Holdings Inc. (BOW) vs Stewart Information Services Corporation (STC)

Bowhead Specialty Holdings Inc. and Stewart Information Services Corporation are both Insurance Property & Casualty companies. Stewart Information Services Corporation is the larger, with a market value of $1.5B against $1.1B — 1.3× the size. Stewart Information Services Corporation trades at the lower P/E: 12.2× against 19.1×. Bowhead Specialty Holdings Inc. grew revenue faster over the last twelve months: 23.8% against 20.6%. Bowhead Specialty Holdings Inc. has the higher net margin (9.32% vs 3.58%) and the higher return on invested capital (16.5% vs 8.33%). Across the 18 metrics below, Bowhead Specialty Holdings Inc. leads on 10 and Stewart Information Services Corporation on 8.

Valuation

Metric BOW STC Insurance Property & Casualty median
P/E 19.05 12.20 12.17
P/S 1.75 0.44 1.26
P/B 2.49 0.88 1.85
Price to free cash flow 2.77 10.07 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.25% 8.20% 8.20%
Free cash flow yield 36.13% 9.93% 11.86%

Profitability

Metric BOW STC Insurance Property & Casualty median
Gross margin 29.81% 64.86% 37.39%
Operating margin 13.36% 8.64% 14.67%
Net margin 9.32% 3.58% 10.16%
Free cash flow margin 63.24% 0.00% 18.60%
Return on equity 13.60% 7.63% 16.59%
Return on assets 2.42% 3.93% 3.38%
Return on invested capital 16.51% 8.33% 9.43%

Growth

Metric BOW STC Insurance Property & Casualty median
Revenue growth (TTM) 23.83% 20.55% 5.70%
EPS growth (last fiscal year) 23.26% 55.17% 39.61%
Revenue growth, 5-year CAGR — 5.01% 9.23%
Net income growth, 5-year CAGR — (5.70%) 10.09%

Health

Metric BOW STC Insurance Property & Casualty median
Debt to equity 0.33 0.39 0.25
Current ratio 0.50 1.63 0.49
Net debt to EBITDA (1.19) 0.99 0.08

Dividend

Metric BOW STC Insurance Property & Casualty median
Dividend yield — 4.37% 1.56%
Payout ratio — 0.53 0.15

Size

Metric BOW STC Insurance Property & Casualty median
Market cap 1.13b 1.50b 2.64b

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