Analyzing Chubb (NYSE:CB) and Skyward Specialty Insurance Group (NASDAQ:SKWD)

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

Volatility & Risk

Skyward Specialty Insurance Group has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Chubb has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Skyward Specialty Insurance Group and Chubb, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyward Specialty Insurance Group	0	3	9	1	2.85
Chubb	0	12	6	2	2.50

Skyward Specialty Insurance Group presently has a consensus price target of $60.70, suggesting a potential upside of 24.05%. Chubb has a consensus price target of $306.82, suggesting a potential upside of 8.39%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Skyward Specialty Insurance Group is more favorable than Chubb.

Institutional and Insider Ownership

94.8% of Skyward Specialty Insurance Group shares are held by institutional investors. Comparatively, 83.8% of Chubb shares are held by institutional investors. 8.0% of Skyward Specialty Insurance Group shares are held by company insiders. Comparatively, 0.8% of Chubb shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skyward Specialty Insurance Group	10.53%	16.40%	3.49%
Chubb	16.08%	12.34%	3.47%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skyward Specialty Insurance Group	$1.15 billion	1.72	$118.83 million	$3.18	15.39
Chubb	$55.75 billion	2.02	$9.27 billion	$22.67	12.49

Chubb has higher revenue and earnings than Skyward Specialty Insurance Group. Chubb 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.

Summary

Skyward Specialty Insurance Group beats Chubb on 9 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 Chubb

Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, and casualty; and group accident and health insurance to large, middle market, and small commercial businesses. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm, ranch, and specialty property and casualty, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual and life, group term life, health protection, personal accident, credit life, universal life, group employee benefits, and unit linked contracts. It markets its products primarily through insurance and reinsurance brokers. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was incorporated in 1985 and is headquartered in Zurich, Switzerland.