Analyzing Selective Insurance Group (NASDAQ:SIGI) and Skyward Specialty Insurance Group (NASDAQ:SKWD)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Selective Insurance Group	$4.86 billion	1.04	$207.00 million	$3.22	25.83
Skyward Specialty Insurance Group	$1.09 billion	1.87	$85.98 million	$3.28	15.49

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.

Volatility and Risk

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

Analyst Ratings

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

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

Selective Insurance Group presently has a consensus price target of $98.71, suggesting a potential upside of 18.68%. Skyward Specialty Insurance Group has a consensus price target of $51.44, suggesting a potential upside of 1.23%. Given Selective Insurance Group’s higher probable upside, analysts plainly believe Selective Insurance Group is more favorable than Skyward Specialty Insurance Group.

Profitability

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

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

Insider & Institutional Ownership

82.9% of Selective Insurance Group shares are held by institutional investors. Comparatively, 94.8% of Skyward Specialty Insurance Group shares are held by institutional investors. 1.5% of Selective Insurance Group 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

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

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.

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.