Skyward Specialty Insurance Group (NASDAQ:SKWD) & GAINSCO (OTCMKTS:GANS) Critical Survey

GAINSCO (OTCMKTS:GANS) and Skyward Specialty Insurance Group (NASDAQ:SKWD) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Institutional and Insider Ownership

94.8% of Skyward Specialty Insurance Group shares are held by institutional investors. 73.5% of GAINSCO shares are held by company insiders. Comparatively, 8.0% of Skyward Specialty Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares GAINSCO and Skyward Specialty Insurance Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GAINSCO	N/A	N/A	N/A	N/A	N/A
Skyward Specialty Insurance Group	$1.15 billion	1.88	$85.98 million	$2.89	18.62

Skyward Specialty Insurance Group has higher revenue and earnings than GAINSCO.

Analyst Ratings

This is a breakdown of current recommendations for GAINSCO and Skyward Specialty Insurance Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GAINSCO	0	0	0	0	0.00
Skyward Specialty Insurance Group	0	3	7	1	2.82

Skyward Specialty Insurance Group has a consensus price target of $56.25, indicating a potential upside of 4.55%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher probable upside, analysts clearly believe Skyward Specialty Insurance Group is more favorable than GAINSCO.

Profitability

This table compares GAINSCO and Skyward Specialty Insurance Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GAINSCO	N/A	N/A	N/A
Skyward Specialty Insurance Group	12.24%	16.39%	3.57%

Summary

Skyward Specialty Insurance Group beats GAINSCO on 9 of the 10 factors compared between the two stocks.

About GAINSCO

GAINSCO, Inc. operates as a property and casualty insurance holding company. The company offers non-standard personal auto products, including coverage for third party liability, bodily injury, and physical damage, as well as collision and coverage for theft, physical damage, and other perils for an insured's vehicle. It is also involved in automotive sales and service, auto racing, and investment activities. The company offers its automobile insurance products under the GAINSCO Auto Insurance brand through independent partner agents and Website comparison shopping places. GAINSCO, Inc. was founded in 1978 and is based in Dallas, Texas.

About Skyward Specialty Insurance Group

Skyward Specialty Insurance Group, Inc., an insurance holding company, underwrites commercial property and casualty insurance products in the United States. It offers general liability, excess liability, professional liability, commercial auto, group accident and health, property, surety, and workers' compensation insurance products. Skyward Specialty Insurance Group, Inc. was incorporated in 2006 and is headquartered in Houston, Texas.