Skyward Specialty Insurance Group (NASDAQ:SKWD) & Selective Insurance Group (NASDAQ:SIGI) Critical Analysis

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Skyward Specialty Insurance Group and Selective Insurance Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyward Specialty Insurance Group	0	4	6	1	2.73
Selective Insurance Group	1	5	2	0	2.13

Skyward Specialty Insurance Group presently has a consensus price target of $51.44, indicating a potential upside of 5.38%. Selective Insurance Group has a consensus price target of $98.71, indicating a potential upside of 17.36%. Given Selective Insurance Group’s higher probable upside, analysts plainly believe Selective Insurance Group is more favorable than Skyward Specialty Insurance Group.

Volatility and Risk

Skyward Specialty Insurance Group has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Selective Insurance Group has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Earnings and Valuation

This table compares Skyward Specialty Insurance Group and Selective Insurance Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skyward Specialty Insurance Group	$885.97 million	2.21	$85.98 million	$3.28	14.88
Selective Insurance Group	$4.86 billion	1.05	$207.00 million	$3.22	26.12

Selective Insurance Group has higher revenue and earnings than Skyward Specialty Insurance Group. Skyward Specialty Insurance Group is trading at a lower price-to-earnings ratio than Selective Insurance Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

94.8% of Skyward Specialty Insurance Group shares are held by institutional investors. Comparatively, 82.9% of Selective Insurance Group shares are held by institutional investors. 8.0% of Skyward Specialty Insurance Group shares are held by company insiders. Comparatively, 1.5% of Selective Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skyward Specialty Insurance Group	12.24%	16.39%	3.57%
Selective Insurance Group	4.26%	7.33%	1.62%

Summary

Skyward Specialty Insurance Group beats Selective Insurance Group on 11 of the 15 factors compared between the two stocks.

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.

About Selective Insurance Group

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. The company operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. It offers casualty insurance products that covers the financial consequences of employee injuries in the course of employment and bodily injury and/or property damage to a third party; property insurance products, which covers the accidental loss of an insured's real property, personal property, and/or earnings due to the property's loss; and flood insurance products. The company also invests in fixed income investments and commercial mortgage loans, as well as equity securities, short-term investments, and alternative investments, and other investments. It offers its insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail agents and wholesale general agents. The company was founded in 1926 and is headquartered in Branchville, New Jersey.