Financial Review: Bowhead Specialty (NYSE:BOW) and Kingstone Companies (NASDAQ:KINS)

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

Earnings and Valuation

This table compares Kingstone Companies and Bowhead Specialty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingstone Companies	$155.14 million	1.43	-$6.17 million	$1.44	11.19
Bowhead Specialty	$425.59 million	3.14	N/A	N/A	N/A

Bowhead Specialty has higher revenue and earnings than Kingstone Companies.

Insider and Institutional Ownership

14.9% of Kingstone Companies shares are held by institutional investors. 12.2% of Kingstone Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingstone Companies	0	0	1	0	3.00
Bowhead Specialty	0	2	3	0	2.60

Kingstone Companies presently has a consensus target price of $6.50, suggesting a potential downside of 59.68%. Bowhead Specialty has a consensus target price of $33.60, suggesting a potential downside of 17.97%. Given Bowhead Specialty’s higher probable upside, analysts plainly believe Bowhead Specialty is more favorable than Kingstone Companies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kingstone Companies	10.60%	32.55%	4.27%
Bowhead Specialty	N/A	N/A	N/A

Summary

Kingstone Companies beats Bowhead Specialty on 6 of the 10 factors compared between the two stocks.

About Kingstone Companies

Kingstone Companies, Inc., through its subsidiary, provides property and casualty insurance products to individuals in the United States. It offers personal line of insurance products, such as homeowners and dwelling fire, cooperative/condominiums, renters, and personal umbrella policies. The company also provides for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies. In addition, it offers reinsurance products. The company underwrites its products through retail and wholesale agents and brokers. The company was formerly known as DCAP Group, Inc. and changed its name to Kingstone Companies, Inc. in July 2009. Kingstone Companies, Inc. was founded in 1886 and is headquartered in Kingston, New York.

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.