Contrasting Bowhead Specialty (NYSE:BOW) and Enstar Group (NASDAQ:ESGR)

Bowhead Specialty (NYSE:BOW) and Enstar Group (NASDAQ:ESGR) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings for Bowhead Specialty and Enstar Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bowhead Specialty	0	2	4	0	2.67
Enstar Group	0	0	0	0	0.00

Bowhead Specialty currently has a consensus price target of $39.67, suggesting a potential upside of 13.38%. Given Bowhead Specialty’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Bowhead Specialty is more favorable than Enstar Group.

Profitability

This table compares Bowhead Specialty and Enstar 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
Enstar Group	73.26%	17.33%	4.54%

Insider & Institutional Ownership

81.0% of Enstar Group shares are held by institutional investors. 8.0% of Enstar Group shares are held 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.

Earnings & Valuation

This table compares Bowhead Specialty and Enstar Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bowhead Specialty	$457.72 million	2.50	$42.79 million	$1.31	26.71
Enstar Group	$1.13 billion	4.42	$1.12 billion	$31.41	10.68

Enstar Group has higher revenue and earnings than Bowhead Specialty. Enstar Group is trading at a lower price-to-earnings ratio than Bowhead Specialty, indicating that it is currently the more affordable of the two stocks.

Summary

Enstar Group beats Bowhead Specialty on 9 of the 13 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 Enstar Group

Enstar Group Limited acquires and manages insurance and reinsurance companies and portfolios in run-off in Bermuda and internationally. It engages in the run-off property and casualty; other reinsurance; life and catastrophe; and legacy underwriting businesses; as well as investment activities. The company also provides consulting services, including claims inspection, claims validation, reinsurance asset collection, syndicate management, and IT consulting services to the insurance and reinsurance industry. In addition, it offers technical inspections of records and claims investigation, diligence services, finality solutions to Lloyd's syndicates and management, as well as broker replacement, claims resolution, and incentive-based collection services for reinsurers and Lloyd's syndicates. The company was formerly known as Castlewood Holdings Limited and changed its name to Enstar Group Limited in January 2007. Enstar Group Limited was founded in 1993 and is headquartered in Hamilton, Bermuda.