Skyward Specialty Insurance Group (NASDAQ:SKWD) versus MS&AD Insurance Group (OTCMKTS:MSADY) Critical Analysis

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

Institutional & Insider Ownership

0.0% of MS&AD Insurance Group shares are owned by institutional investors. Comparatively, 94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. 7.9% of Skyward Specialty Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MS&AD Insurance Group	$43.74 billion	0.78	$4.56 billion	$3.26	7.04
Skyward Specialty Insurance Group	$1.15 billion	1.65	$118.83 million	$3.39	13.86

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

Risk & Volatility

MS&AD Insurance Group has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Skyward Specialty Insurance Group has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for MS&AD Insurance Group and Skyward Specialty Insurance Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MS&AD Insurance Group	0	1	0	0	2.00
Skyward Specialty Insurance Group	0	3	10	1	2.86

Skyward Specialty Insurance Group has a consensus target price of $64.27, indicating a potential upside of 36.75%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher possible upside, analysts clearly believe Skyward Specialty Insurance Group is more favorable than MS&AD Insurance Group.

Profitability

This table compares MS&AD 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
MS&AD Insurance Group	9.93%	17.00%	2.67%
Skyward Specialty Insurance Group	10.57%	17.30%	3.63%

Summary

Skyward Specialty Insurance Group beats MS&AD Insurance Group on 13 of the 15 factors compared between the two stocks.

About MS&AD Insurance Group

MS&AD Insurance Group Holdings, Inc., an insurance holding company, provides insurance and financial services worldwide. The company offers domestic non-life insurance; life insurance; international business; financial services; and provides risk-related services. The company was formerly known as Mitsui Sumitomo Insurance Group Holdings, Inc. and changed its name to MS&AD Insurance Group Holdings, Inc. in April 2010. MS&AD Insurance Group Holdings, Inc. was founded in 1918 and is headquartered in Tokyo, Japan.

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.