Financial Contrast: Kingsway Financial Services (NYSE:KFS) versus Skyward Specialty Insurance Group (NASDAQ:SKWD)

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

Volatility and Risk

Kingsway Financial Services has a beta of -0.06, indicating that its stock price is 106% less volatile than the S&P 500. Comparatively, Skyward Specialty Insurance Group has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kingsway Financial Services	-3.63%	-7.83%	-0.74%
Skyward Specialty Insurance Group	12.24%	16.39%	3.57%

Institutional and Insider Ownership

72.4% of Kingsway Financial Services shares are held by institutional investors. Comparatively, 94.8% of Skyward Specialty Insurance Group shares are held by institutional investors. 54.8% of Kingsway Financial Services 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.

Analyst Ratings

This is a summary of current ratings and price targets for Kingsway Financial Services and Skyward Specialty Insurance Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingsway Financial Services	0	0	0	0	0.00
Skyward Specialty Insurance Group	0	4	6	1	2.73

Skyward Specialty Insurance Group has a consensus price target of $55.00, suggesting a potential upside of 5.59%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher probable upside, analysts plainly believe Skyward Specialty Insurance Group is more favorable than Kingsway Financial Services.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingsway Financial Services	$108.73 million	1.92	$23.56 million	N/A	N/A
Skyward Specialty Insurance Group	$1.15 billion	1.82	$85.98 million	$2.89	18.02

Skyward Specialty Insurance Group has higher revenue and earnings than Kingsway Financial Services.

Summary

Skyward Specialty Insurance Group beats Kingsway Financial Services on 11 of the 13 factors compared between the two stocks.

About Kingsway Financial Services

Kingsway Financial Services Inc., through its subsidiaries, engages in the extended warranty and business services in the United States. The company operates through two segments, Extended Warranty and Kingsway Search Xcelerator. The Extended Warranty segment markets, sells, and administers vehicle service agreements and related products for new and used automobiles, motorcycles, and ATVs. This segment also markets and distributes warranty products to manufacturers, distributors, and installers of heating, ventilation and air conditioning, standby generator, commercial LED lighting, and commercial refrigeration equipment; and provides equipment breakdown and maintenance support services to companies, as well as after-market vehicle protection services. The Kingsway Search Xcelerator offers outsourced finance and human resources consulting services, including operational accounting, such as bookkeeping, accounting, financial reporting, and analysis and strategic finance services; technical accounting comprising initial public offerings, Securities and Exchange Commission reporting, and international consolidation services; human resources, workforce management, and compliance support services; and advisory services. This segment also provides financial executive services for project and interim staffing engagements; search services for permanent placements; healthcare staffing services to acute healthcare facilities for short-term and day-to-day needs of hospitals; software products for the management needs of all types of shared-ownership properties; and fully managed outsourced cardiac telemetry services, as well as provides mobile monitors to the hospitals. The company offers its products and services through credit unions and dealers. Kingsway Financial Services Inc. was incorporated in 1989 and is headquartered in Chicago, Illinois.

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.