Analyzing Sampo (OTCMKTS:SAXPY) and Skyward Specialty Insurance Group (NASDAQ:SKWD)

Sampo (OTCMKTS:SAXPY) and Skyward Specialty Insurance Group (NASDAQ:SKWD) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

0.0% of Sampo shares are owned by institutional investors. Comparatively, 94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. 8.0% of Skyward Specialty Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Sampo and Skyward Specialty Insurance Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sampo	$2.47 billion	45.79	$2.26 billion	$1.72	12.31
Skyward Specialty Insurance Group	$1.15 billion	1.59	$118.83 million	$3.39	13.35

Sampo has higher revenue and earnings than Skyward Specialty Insurance Group. Sampo 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 breakdown of current ratings and recommmendations for Sampo and Skyward Specialty Insurance Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sampo	0	3	0	1	2.50
Skyward Specialty Insurance Group	0	4	8	1	2.77

Skyward Specialty Insurance Group has a consensus price target of $67.82, suggesting a potential upside of 49.87%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher probable upside, analysts clearly believe Skyward Specialty Insurance Group is more favorable than Sampo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sampo	N/A	19.46%	5.61%
Skyward Specialty Insurance Group	10.57%	17.30%	3.63%

Risk and Volatility

Sampo has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Skyward Specialty Insurance Group has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Summary

Skyward Specialty Insurance Group beats Sampo on 9 of the 14 factors compared between the two stocks.

About Sampo

Sampo Oyj, together with its subsidiaries, engages in the provision of non-life insurance products and services in Finland, Sweden, Norway, Denmark, Estonia, Lithuania, Latvia, and the United Kingdom. The company operates through If, Topdanmark, Hastings, Mandatum, and Holding segments. It offers property, casualty, liability, accident, sickness, household, homeowner, motor, travel, marine, aviation, transport, forest, livestock, health, workers compensation, car, van, and bike insurance services, as well as reinsurance services. The company was founded in 1909 and is based in Helsinki, Finland.

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.