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 $1.6B against $1.1B — 1.4× the size. Stewart Information Services Corporation trades at the lower P/E: 11.5× against 18.5×. Bowhead Specialty Holdings Inc. grew revenue faster over the last twelve months: 25.0% against 22.5%. Bowhead Specialty Holdings Inc. has the higher net margin (10.1% vs 4.12%) and the higher return on invested capital (11.4% vs 9.12%). 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 18.48 11.52 10.75
P/S 1.83 0.49 1.21
P/B 2.38 0.96 1.99
Price to free cash flow 3.42 10.87 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.41% 8.68% 9.08%
Free cash flow yield 29.24% 9.20% 12.11%

Profitability

Metric BOW STC Insurance Property & Casualty median
Gross margin 30.51% 64.35% 41.16%
Operating margin 13.50% 9.19% 15.09%
Net margin 10.11% 4.12% 11.51%
Free cash flow margin 53.45% 4.50% 17.46%
Return on equity 14.14% 8.64% 17.34%
Return on assets 2.69% 4.44% 3.74%
Return on invested capital 11.43% 9.12% 12.06%

Growth

Metric BOW STC Insurance Property & Casualty median
Revenue growth (TTM) 25.02% 22.49% 8.02%
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 0.31 0.39 0.25
Current ratio 0.48 1.81 0.42
Net debt to EBITDA (1.19) 0.99 0.08

Dividend

Metric BOW STC Insurance Property & Casualty median
Dividend yield — 4.04% 1.50%
Payout ratio — 0.47 0.14

Size

Metric BOW STC Insurance Property & Casualty median
Market cap 1.12b 1.59b 2.67b

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