Critical Contrast: Stewart Information Services (NYSE:STC) and Skyward Specialty Insurance Group (NASDAQ:SKWD)

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

Volatility & Risk

Stewart Information Services has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Skyward Specialty Insurance Group has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Stewart Information Services and Skyward Specialty Insurance Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stewart Information Services	0	1	2	0	2.67
Skyward Specialty Insurance Group	0	3	10	1	2.86

Stewart Information Services currently has a consensus target price of $77.50, suggesting a potential upside of 7.06%. Skyward Specialty Insurance Group has a consensus target price of $63.50, suggesting a potential upside of 28.49%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher possible upside, analysts plainly believe Skyward Specialty Insurance Group is more favorable than Stewart Information Services.

Institutional and Insider Ownership

96.9% of Stewart Information Services shares are held by institutional investors. Comparatively, 94.8% of Skyward Specialty Insurance Group shares are held by institutional investors. 1.5% of Stewart Information Services shares are held by insiders. Comparatively, 8.0% of Skyward Specialty Insurance Group shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stewart Information Services	3.65%	8.57%	4.45%
Skyward Specialty Insurance Group	10.57%	17.30%	3.63%

Valuation & Earnings

This table compares Stewart Information Services and Skyward Specialty Insurance Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stewart Information Services	$2.80 billion	0.72	$73.31 million	$3.59	20.16
Skyward Specialty Insurance Group	$1.15 billion	1.74	$118.83 million	$3.39	14.58

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

Summary

Skyward Specialty Insurance Group beats Stewart Information Services on 9 of the 15 factors compared between the two stocks.

About Stewart Information Services

Stewart Information Services Corporation, through its subsidiaries, provides title insurance and real estate transaction related services in the United States and internationally. The company involves in searching, examining, closing, and insuring the condition of the title to real property. It also offers home and personal insurance services; services for tax-deferred exchanges; and digital customer engagement platform services. It also provides appraisal management, online notarization and closing, credit and real estate information, and search and valuation services. The company serves homebuyers and sellers, residential and commercial real estate professionals, mortgage lenders and servicers, title agencies and real estate attorneys, and home builders through direct operations, network of independent agencies, and other businesses. The company was founded in 1893 and is headquartered in Houston, Texas.

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.