Analyzing Atlas Financial (OTCMKTS:AFHIF) & Skyward Specialty Insurance Group (NASDAQ:SKWD)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlas Financial	N/A	N/A	N/A
Skyward Specialty Insurance Group	11.36%	18.24%	3.69%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Financial	N/A	N/A	N/A	($0.78)	N/A
Skyward Specialty Insurance Group	$1.42 billion	1.43	$170.03 million	$4.15	12.06

Skyward Specialty Insurance Group has higher revenue and earnings than Atlas Financial. Atlas Financial 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.

Institutional & Insider Ownership

94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. 14.4% of Atlas Financial shares are owned by company insiders. Comparatively, 8.5% of Skyward Specialty Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Atlas Financial and Skyward Specialty Insurance Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Financial	0	0	0	0	0.00
Skyward Specialty Insurance Group	0	3	6	2	2.91

Skyward Specialty Insurance Group has a consensus price target of $65.00, indicating a potential upside of 29.87%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher possible upside, analysts clearly believe Skyward Specialty Insurance Group is more favorable than Atlas Financial.

Summary

Skyward Specialty Insurance Group beats Atlas Financial on 10 of the 11 factors compared between the two stocks.

About Atlas Financial

Atlas Financial Holdings, Inc., through its subsidiary, Anchor Group Management, Inc., engages in generating, underwriting, and servicing of commercial automobile insurance in the United States. The company's automobile insurance products provide insurance coverage in three areas, including liability, accident benefits, and physical damage. It focuses on the light commercial automobile sector, including taxi cabs, non-emergency paratransit, limousine, livery, and business autos. It distributes its insurance products through a network of independent retail agents. Atlas Financial Holdings, Inc. was founded in 2009 and is headquartered in Schaumburg, Illinois.

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.