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

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

Profitability

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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMERISAFE	$306.85 million	2.86	$62.11 million	$3.23	14.19
Skyward Specialty Insurance Group	$885.97 million	1.62	$85.98 million	$2.24	16.05

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.

Volatility & Risk

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for AMERISAFE and Skyward Specialty Insurance Group, as provided by MarketBeat.com.

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

AMERISAFE presently has a consensus price target of $65.00, suggesting a potential upside of 41.86%. Skyward Specialty Insurance Group has a consensus price target of $39.89, suggesting a potential upside of 10.93%. Given AMERISAFE’s higher possible upside, research analysts plainly believe AMERISAFE is more favorable than Skyward Specialty Insurance Group.

Insider and Institutional Ownership

97.4% of AMERISAFE shares are owned by institutional investors. Comparatively, 94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. 1.6% of AMERISAFE shares are owned by company insiders. Comparatively, 8.0% of Skyward Specialty Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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.

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.