Head to Head Survey: Axis Capital (NYSE:AXS) & Skyward Specialty Insurance Group (NASDAQ:SKWD)

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

Volatility and Risk

Axis Capital has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Skyward Specialty Insurance Group has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Axis Capital and Skyward Specialty Insurance Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axis Capital	0	3	7	0	2.70
Skyward Specialty Insurance Group	0	3	10	1	2.86

Axis Capital presently has a consensus price target of $115.29, indicating a potential upside of 23.14%. Skyward Specialty Insurance Group has a consensus price target of $62.73, indicating a potential upside of 37.59%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher probable upside, analysts plainly believe Skyward Specialty Insurance Group is more favorable than Axis Capital.

Insider and Institutional Ownership

93.4% of Axis Capital shares are owned by institutional investors. Comparatively, 94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. 0.7% of Axis Capital shares are owned by company insiders. Comparatively, 7.9% of Skyward Specialty Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Axis Capital	16.08%	19.25%	3.18%
Skyward Specialty Insurance Group	10.57%	17.88%	3.76%

Earnings & Valuation

This table compares Axis Capital and Skyward Specialty Insurance Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axis Capital	$6.29 billion	1.15	$1.08 billion	$12.10	7.74
Skyward Specialty Insurance Group	$1.15 billion	1.60	$118.83 million	$3.39	13.45

Axis Capital has higher revenue and earnings than Skyward Specialty Insurance Group. Axis Capital 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.

Summary

Skyward Specialty Insurance Group beats Axis Capital on 9 of the 15 factors compared between the two stocks.

About Axis Capital

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products in Bermuda, the United States, and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers professional insurance products that cover directors' and officers' liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This segment also provides marine and aviation insurance services for offshore energy, renewable offshore energy, cargo, liability, including kidnap and ransom, fine art, specie, and hull war, hull and liability, and specific war coverage for passenger airlines, cargo operations, general aviation operations, airports, aviation authorities, security firms, and product manufacturers; personal accident, travel insurance, specialty health products for employer and affinity groups, and pet insurance products; and liability, cyber, and credit and political risk insurance services. The Reinsurance segment offers agriculture, marine and aviation, catastrophe, accidental and health, credit and surety, motor, professional, travel, life, engineering, property, and liability reinsurance products. AXIS Capital Holdings Limited was founded in 2001 and is headquartered in Pembroke, Bermuda.

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.