Posted by on May 10th, 2025
Fairfax Financial (OTCMKTS:FRFHF – Get Free Report) and Skyward Specialty Insurance Group (NASDAQ:SKWD – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.
Fairfax Financial has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Skyward Specialty Insurance Group has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.
10.4% of Fairfax Financial shares are owned by institutional investors. Comparatively, 94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. 8.0% of Skyward Specialty Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Fairfax Financial and Skyward Specialty Insurance Group’s net margins, return on equity and return on assets.
| 12.47% | 14.43% | 4.09% | |
| 12.24% | 16.39% | 3.57% |
This table compares Fairfax Financial and Skyward Specialty Insurance Group”s revenue, earnings per share and valuation.
| $31.06 billion | 1.15 | $3.87 billion | $172.92 | 9.12 | |
| $1.21 billion | 1.99 | $85.98 million | $3.00 | 19.96 |
Fairfax Financial has higher revenue and earnings than Skyward Specialty Insurance Group. Fairfax 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.
This is a summary of recent ratings and recommmendations for Fairfax Financial and Skyward Specialty Insurance Group, as provided by MarketBeat.com.
| 0 | 0 | 3 | 0 | 3.00 | |
| Skyward Specialty Insurance Group | 0 | 4 | 7 | 1 | 2.75 |
Fairfax Financial currently has a consensus target price of $1,500.00, suggesting a potential downside of 4.84%. Skyward Specialty Insurance Group has a consensus target price of $61.13, suggesting a potential upside of 2.08%. Given Skyward Specialty Insurance Group’s higher possible upside, analysts clearly believe Skyward Specialty Insurance Group is more favorable than Fairfax Financial.
Skyward Specialty Insurance Group beats Fairfax Financial on 8 of the 15 factors compared between the two stocks.
Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally. The company operates through Property and Casualty Insurance and Reinsurance, Life insurance and Run-off, and Non-Insurance Companies segments. It insures against losses to property from fire, explosion, earthquake, windstorm, flood, terrorism, boiler explosion, machinery breakdown, and construction defects, as well as underwrites automobile, commercial and personal property, and crop insurance. The company also offers workers' compensation, automobile, employer's liability, accident and health, medical malpractice, professional liability, and umbrella coverage insurance products; marine, aerospace, surety risk, and other risks and liabilities insurance products; and reinsurance products. In addition, it franchises, owns, and operates restaurants; retails sports lifestyle products; provides integrated travel and travel-related financial services, as well as advanced digital tools for agriculture; owns and operates holiday resorts; originates, processes, and distributes value-added pulses and staple foods; develops, manages, and invests in hospitality real estate. The company was formerly known as Markel Financial Holdings Limited and changed its name to Fairfax Financial Holdings Limited in 1987. Fairfax Financial Holdings Limited was incorporated in 1951 and is headquartered in Toronto, Canada.
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.
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