Skyward Specialty Insurance Group (NASDAQ:SKWD) and Hagerty (NYSE:HGTY) Head to Head Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skyward Specialty Insurance Group	10.53%	16.40%	3.49%
Hagerty	4.88%	13.76%	4.02%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skyward Specialty Insurance Group	$1.26 billion	1.51	$118.83 million	$3.18	14.79
Hagerty	$1.20 billion	3.44	$17.02 million	$0.20	60.27

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

Institutional and Insider Ownership

94.8% of Skyward Specialty Insurance Group shares are held by institutional investors. Comparatively, 20.5% of Hagerty shares are held by institutional investors. 8.0% of Skyward Specialty Insurance Group shares are held by insiders. Comparatively, 16.7% of Hagerty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Skyward Specialty Insurance Group and Hagerty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyward Specialty Insurance Group	0	3	7	1	2.82
Hagerty	1	2	2	0	2.20

Skyward Specialty Insurance Group presently has a consensus target price of $60.78, indicating a potential upside of 29.26%. Hagerty has a consensus target price of $13.20, indicating a potential upside of 9.51%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Skyward Specialty Insurance Group is more favorable than Hagerty.

Volatility & Risk

Skyward Specialty Insurance Group has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Hagerty has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Summary

Skyward Specialty Insurance Group beats Hagerty on 10 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 Hagerty

Hagerty, Inc. provides insurance agency services worldwide. It offers motor vehicle and boat insurance products; and reinsurance products. The company provides Hagerty Media, which publishes contents through the Hagerty Drivers Club Magazine (HDC), video content, and social media channels; HDC that offers subscription based products and services, including HDC Magazine, automotive enthusiast events, proprietary vehicle valuation tools, emergency roadside services, and special vehicle-related discounts. In addition, it offers HVT, a valuation tool used by the customer to access current and historic pricing data of collector vehicle models. Further, the company offers Hagerty Garage + Social, a platform that provides clubhouses and car storage facilities. Hagerty, Inc. is headquartered in Traverse City, Michigan.