The Hartford Financial Services Group (NYSE:HIG) vs. Skyward Specialty Insurance Group (NASDAQ:SKWD) Financial Analysis

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

Earnings and Valuation

This table compares Skyward Specialty Insurance Group and The Hartford Financial Services Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skyward Specialty Insurance Group	$885.97 million	1.75	$85.98 million	$2.72	14.22
The Hartford Financial Services Group	$24.53 billion	1.22	$2.50 billion	$8.80	11.49

The Hartford Financial Services Group has higher revenue and earnings than Skyward Specialty Insurance Group. The Hartford Financial Services Group 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 summary of current ratings for Skyward Specialty Insurance Group and The Hartford Financial Services Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyward Specialty Insurance Group	0	2	6	1	2.89
The Hartford Financial Services Group	0	8	9	0	2.53

Skyward Specialty Insurance Group currently has a consensus price target of $42.75, indicating a potential upside of 10.52%. The Hartford Financial Services Group has a consensus price target of $107.50, indicating a potential upside of 6.32%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Skyward Specialty Insurance Group is more favorable than The Hartford Financial Services Group.

Risk & Volatility

Skyward Specialty Insurance Group has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, The Hartford Financial Services Group has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares Skyward Specialty Insurance Group and The Hartford Financial Services Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skyward Specialty Insurance Group	11.16%	15.98%	3.27%
The Hartford Financial Services Group	10.87%	20.64%	3.90%

Institutional and Insider Ownership

94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. Comparatively, 93.4% of The Hartford Financial Services Group shares are owned by institutional investors. 8.0% of Skyward Specialty Insurance Group shares are owned by company insiders. Comparatively, 1.6% of The Hartford Financial Services Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Skyward Specialty Insurance Group beats The Hartford Financial Services Group on 8 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 The Hartford Financial Services Group

The Hartford Financial Services Group, Inc., together with its subsidiaries, provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers insurance coverages, including workers' compensation, property, automobile, general and professional liability, package business, umbrella, fidelity and surety, marine, livestock, accident, health, and reinsurance through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channels and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Group Benefits segment provides group life, disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and leave management solution. This segment also distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers managed mutual funds across various asset classes; and exchange-traded funds through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers, as well as investment management, distribution, and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut.