Comparing AMERISAFE (NASDAQ:AMSF) & Skyward Specialty Insurance Group (NASDAQ:SKWD)

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

Valuation & Earnings

This table compares Skyward Specialty Insurance Group and AMERISAFE’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skyward Specialty Insurance Group	$895.40 million	1.63	$85.98 million	$2.24	16.30
AMERISAFE	$306.85 million	3.17	$62.11 million	$3.23	15.76

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

Skyward Specialty Insurance Group has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, AMERISAFE has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyward Specialty Insurance Group	0	1	6	1	3.00
AMERISAFE	0	0	1	0	3.00

Skyward Specialty Insurance Group presently has a consensus price target of $39.89, indicating a potential upside of 9.22%. AMERISAFE has a consensus price target of $65.00, indicating a potential upside of 27.70%. Given AMERISAFE’s higher probable upside, analysts plainly believe AMERISAFE is more favorable than Skyward Specialty Insurance Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skyward Specialty Insurance Group	9.56%	14.31%	2.84%
AMERISAFE	20.24%	17.19%	4.38%

Insider & Institutional Ownership

94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. Comparatively, 97.4% of AMERISAFE shares are owned by institutional investors. 8.0% of Skyward Specialty Insurance Group shares are owned by insiders. Comparatively, 1.6% of AMERISAFE 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.

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. The company was incorporated in 2006 and is headquartered in Houston, Texas.

About AMERISAFE

AMERISAFE, Inc., an insurance holding company, underwrites workers' compensation insurance in the United States. The company provides benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. It sells its products through retail and wholesale brokers and agents; and small and mid-sized employers engaged in hazardous industries, including construction, trucking, logging and lumber, agriculture, manufacturing, telecommunications, and maritime. AMERISAFE, Inc. was incorporated in 1985 and is based in DeRidder, Louisiana.