Bowhead Specialty Holdings Inc. (BOW) vs United Fire Group, Inc (UFCS)

Bowhead Specialty Holdings Inc. and United Fire Group, Inc are both Insurance Property & Casualty companies. Bowhead Specialty Holdings Inc. and United Fire Group, Inc are of similar size ($1.2B and $1.1B). United Fire Group, Inc trades at the lower P/E: 9.0× against 19.1×. Bowhead Specialty Holdings Inc. grew revenue faster over the last twelve months: 23.8% against 11.6%. Bowhead Specialty Holdings Inc. has the higher net margin (9.32% vs 9.06%) and the higher return on invested capital (16.5% vs 0.00%). Across the 18 metrics below, Bowhead Specialty Holdings Inc. leads on 9 and United Fire Group, Inc on 9.

Valuation

Metric BOW UFCS Insurance Property & Casualty median
P/E 19.05 9.03 12.17
P/S 1.75 0.80 1.26
P/B 2.49 1.24 1.85
Price to free cash flow 2.77 3.93 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.25% 11.08% 8.20%
Free cash flow yield 36.13% 25.45% 11.86%

Profitability

Metric BOW UFCS Insurance Property & Casualty median
Gross margin 29.81% 34.30% 37.39%
Operating margin 13.36% 12.08% 14.67%
Net margin 9.32% 9.06% 10.16%
Free cash flow margin 63.24% 20.42% 18.60%
Return on equity 13.60% 14.90% 16.59%
Return on assets 2.42% 3.49% 3.38%
Return on invested capital 16.51% 0.00% 9.43%

Growth

Metric BOW UFCS Insurance Property & Casualty median
Revenue growth (TTM) 23.83% 11.58% 5.70%
EPS growth (last fiscal year) 23.26% 87.45% 39.61%
Revenue growth, 5-year CAGR — 5.34% 9.23%
Net income growth, 5-year CAGR — 0.00% 10.09%

Health

Metric BOW UFCS Insurance Property & Casualty median
Debt to equity 0.33 0.00 0.25
Current ratio 0.50 0.34 0.49
Net debt to EBITDA (1.19) (0.06) 0.08

Dividend

Metric BOW UFCS Insurance Property & Casualty median
Dividend yield — 1.61% 1.56%
Payout ratio — 0.15 0.15

Size

Metric BOW UFCS Insurance Property & Casualty median
Market cap 1.13b 1.22b 2.64b

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