Financial Analysis: Fidelis Insurance (NYSE:FIHL) vs. Bowhead Specialty (NYSE:BOW)

Fidelis Insurance (NYSE:FIHL) and Bowhead Specialty (NYSE:BOW) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelis Insurance	$2.42 billion	0.72	$2.13 billion	$0.94	16.58
Bowhead Specialty	$425.59 million	2.91	N/A	N/A	N/A

Fidelis Insurance has higher revenue and earnings than Bowhead Specialty.

Analyst Recommendations

This is a summary of recent ratings for Fidelis Insurance and Bowhead Specialty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelis Insurance	1	2	3	0	2.33
Bowhead Specialty	0	2	3	0	2.60

Fidelis Insurance presently has a consensus target price of $20.57, indicating a potential upside of 32.00%. Bowhead Specialty has a consensus target price of $33.60, indicating a potential downside of 11.36%. Given Fidelis Insurance’s higher possible upside, equities analysts plainly believe Fidelis Insurance is more favorable than Bowhead Specialty.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fidelis Insurance	20.17%	15.27%	3.36%
Bowhead Specialty	N/A	N/A	N/A

Institutional & Insider Ownership

82.0% of Fidelis Insurance shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Fidelis Insurance beats Bowhead Specialty on 6 of the 8 factors compared between the two stocks.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, 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.