Comparing GAINSCO (OTCMKTS:GANS) and Skyward Specialty Insurance Group (NASDAQ:SKWD)

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

Insider and Institutional Ownership

94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. 73.5% of GAINSCO shares are owned by insiders. Comparatively, 8.0% of Skyward Specialty Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for GAINSCO and Skyward Specialty Insurance Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GAINSCO	0	0	0	0	0.00
Skyward Specialty Insurance Group	0	3	7	1	2.82

Skyward Specialty Insurance Group has a consensus target price of $56.25, indicating a potential upside of 13.07%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher possible upside, analysts clearly believe Skyward Specialty Insurance Group is more favorable than GAINSCO.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GAINSCO	N/A	N/A	N/A
Skyward Specialty Insurance Group	12.24%	16.39%	3.57%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GAINSCO	N/A	N/A	N/A	N/A	N/A
Skyward Specialty Insurance Group	$1.15 billion	1.74	$85.98 million	$2.89	17.21

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

Summary

Skyward Specialty Insurance Group beats GAINSCO on 9 of the 10 factors compared between the two stocks.

About GAINSCO

GAINSCO, Inc. operates as a property and casualty insurance holding company. The company offers non-standard personal auto products, including coverage for third party liability, bodily injury, and physical damage, as well as collision and coverage for theft, physical damage, and other perils for an insured's vehicle. It is also involved in automotive sales and service, auto racing, and investment activities. The company offers its automobile insurance products under the GAINSCO Auto Insurance brand through independent partner agents and Website comparison shopping places. GAINSCO, Inc. was founded in 1978 and is based in Dallas, Texas.

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.