Financial Comparison: Hamilton Insurance Group (NYSE:HG) vs. Bowhead Specialty (NYSE:BOW)

Bowhead Specialty (NYSE:BOW) and Hamilton Insurance Group (NYSE:HG) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bowhead Specialty	N/A	N/A	N/A
Hamilton Insurance Group	21.88%	21.92%	6.70%

Valuation and Earnings

This table compares Bowhead Specialty and Hamilton Insurance Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bowhead Specialty	$389.11 million	2.92	N/A	N/A	N/A
Hamilton Insurance Group	$2.30 billion	0.83	$258.73 million	$4.47	4.24

Hamilton Insurance Group has higher revenue and earnings than Bowhead Specialty.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Bowhead Specialty and Hamilton Insurance Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bowhead Specialty	0	3	2	0	2.40
Hamilton Insurance Group	0	1	4	0	2.80

Bowhead Specialty currently has a consensus price target of $32.00, indicating a potential downside of 8.05%. Hamilton Insurance Group has a consensus price target of $22.60, indicating a potential upside of 19.26%. Given Hamilton Insurance Group’s stronger consensus rating and higher probable upside, analysts clearly believe Hamilton Insurance Group is more favorable than Bowhead Specialty.

Insider & Institutional Ownership

29.2% of Hamilton Insurance Group shares are owned by institutional investors. 2.7% of Hamilton Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Hamilton Insurance Group beats Bowhead Specialty on 9 of the 10 factors compared between the two stocks.

About Bowhead Specialty

Bowhead Specialty Holdings Inc. provides specialty property and casualty insurance products in the United States. It underwrites casualty insurance solutions for risks in the construction, distribution, heavy manufacturing, real estate, and hospitality segments; professional liability insurance solutions for financial institutions, private and public directors and officers liability insurance, errors and omissions liability insurance, and cyber segments; and healthcare solutions for hospitals, senior care providers, managed care organizations, miscellaneous medical facilities, and healthcare management liability segments. The company distributes its products through distribution partners in wholesale and retail markets. Bowhead Specialty Holdings Inc. was formerly known as Bowhead Holdings Inc. and changed its name to Bowhead Specialty Holdings Inc. in March 2024. The company was founded in 2020 and is based in New York, New York. Bowhead Specialty Holdings Inc. operates as a subsidiary of Bowhead Insurance Holdings LP.

About Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.