Conifer (NASDAQ:CNFR) and Skyward Specialty Insurance Group (NASDAQ:SKWD) Critical Review

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

Earnings & Valuation

This table compares Skyward Specialty Insurance Group and Conifer”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	$1.09 billion	1.94	$85.98 million	$2.89	18.27
Conifer	$74.82 million	0.16	-$25.90 million	$2.42	0.40

Skyward Specialty Insurance Group has higher revenue and earnings than Conifer. Conifer 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.

Analyst Ratings

This is a breakdown of recent recommendations for Skyward Specialty Insurance Group and Conifer, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyward Specialty Insurance Group	0	3	6	1	2.80
Conifer	0	0	0	0	0.00

Skyward Specialty Insurance Group currently has a consensus target price of $53.25, indicating a potential upside of 0.85%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Skyward Specialty Insurance Group is more favorable than Conifer.

Institutional and Insider Ownership

94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. Comparatively, 34.9% of Conifer shares are owned by institutional investors. 8.0% of Skyward Specialty Insurance Group shares are owned by insiders. Comparatively, 70.4% of Conifer shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skyward Specialty Insurance Group	12.24%	16.39%	3.57%
Conifer	34.76%	-335.82%	-9.84%

Volatility and Risk

Skyward Specialty Insurance Group has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Conifer has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Summary

Skyward Specialty Insurance Group beats Conifer on 13 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 Conifer

Conifer Holdings, Inc., an insurance holding company, engages in the sale of property and casualty insurance products. The company offers insurance coverage in specialty commercial and personal product lines. It also underwrites various specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The company serves the commercial insurance needs of owner-operated businesses in the markets, such as hospitality, which includes restaurants, bars, taverns, and bowling centers, as well as small grocery and convenience stores; artisan contractors comprising plumbers, painters, carpenters, electricians, and other independent contractors; and security service providers, including companies that provide security guard services, security alarm products and services, and private investigative services. It offers specialty homeowners insurance products, such as low- value dwelling insurance tailored for owners of lower valued homes in Illinois, Indiana, Louisiana, and Texas; and wholesale agency services comprising commercial and personal lines insurance products for its insurance company subsidiaries, as well as third party insurers. Conifer Holdings, Inc. markets and sells its insurance products through a network of independent agents in 50 states in the United States. The company was incorporated in 2009 and is headquartered in Troy, Michigan.