Reviewing Bowhead Specialty (NYSE:BOW) & Enstar Group (NASDAQ:ESGR)

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

Analyst Recommendations

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

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

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enstar Group	73.26%	17.33%	4.54%
Bowhead Specialty	N/A	N/A	N/A

Institutional and Insider 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, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

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

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

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 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.

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.