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. United Fire Group, Inc is the larger, with a market value of $1.4B against $1.1B — 1.2× the size. United Fire Group, Inc trades at the lower P/E: 9.9× against 18.3×. Bowhead Specialty Holdings Inc. grew revenue faster over the last twelve months: 25.0% against 11.4%. Bowhead Specialty Holdings Inc. has the higher net margin (10.1% vs 9.57%) and the lower return on invested capital (11.4% vs 12.0%). Across the 20 metrics below, United Fire Group, Inc leads on 12 and Bowhead Specialty Holdings Inc. on 8.

Valuation

Metric BOW UFCS Insurance Property & Casualty median
P/E 18.29 9.91 10.29
P/S 1.81 0.93 1.17
P/B 2.36 1.40 1.83
Price to free cash flow 3.38 5.10 7.48
EV/EBITDA 12.96 6.85 7.49
EV/Sales 1.78 0.93 1.13
Earnings yield 5.47% 10.09% 9.50%
Free cash flow yield 29.55% 19.60% 13.29%

Profitability

Metric BOW UFCS Insurance Property & Casualty median
Gross margin 30.51% 35.24% 41.16%
Operating margin 13.50% 12.87% 15.09%
Net margin 10.11% 9.57% 11.51%
Free cash flow margin 53.45% 18.22% 17.59%
Return on equity 14.14% 15.46% 18.19%
Return on assets 2.69% 3.67% 3.74%
Return on invested capital 11.43% 12.03% 12.06%

Growth

Metric BOW UFCS Insurance Property & Casualty median
Revenue growth (TTM) 25.02% 11.36% 8.69%
EPS growth (last fiscal year) 23.26% 87.45% —
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 0.31 0.15 0.25
Current ratio 0.48 0.34 0.42
Net debt to EBITDA (1.19) (0.06) 0.08

Dividend

Metric BOW UFCS Insurance Property & Casualty median
Dividend yield — 2.93% 2.79%
Payout ratio — 0.30 0.27

Size

Metric BOW UFCS Insurance Property & Casualty median
Market cap 1.12b 1.37b 2.44b

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