Donegal Group (DGICA) & its Peers Head-To-Head Survey

Donegal Group (NASDAQ: DGICA) is one of 92 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it contrast to its rivals? We will compare Donegal Group to related businesses based off the strength of its profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares Donegal Group and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Donegal Group $715.06 million $24.38 million 31.67
Donegal Group Competitors $11.75 billion $2.00 billion 33.01

Donegal Group’s rivals have higher revenue and earnings than Donegal Group. Donegal Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently the more affordable than other companies in its industry.

Dividends

Donegal Group pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. Donegal Group pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 26.8% of their earnings in the form of a dividend.

Institutional & Insider Ownership

29.5% of Donegal Group shares are held by institutional investors. Comparatively, 61.9% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 11.9% of Donegal Group shares are held by company insiders. Comparatively, 14.8% of shares of all “Property & Casualty Insurance” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Donegal Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Donegal Group 1.84% 2.24% 0.60%
Donegal Group Competitors 10.15% 5.36% 2.73%

Volatility & Risk

Donegal Group has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Donegal Group’s rivals have a beta of 0.93, indicating that their average stock price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Donegal Group and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Donegal Group 0 2 0 0 2.00
Donegal Group Competitors 713 2510 2221 69 2.30

Donegal Group currently has a consensus target price of $18.00, suggesting a potential upside of 15.98%. All “Property & Casualty Insurance” companies have a potential downside of 0.50%. Given Donegal Group’s higher probable upside, analysts clearly believe Donegal Group is more favorable than its rivals.

Summary

Donegal Group rivals beat Donegal Group on 12 of the 15 factors compared.

About Donegal Group

Donegal Group Inc. (DGI) is an insurance holding company whose insurance subsidiaries offer personal and commercial lines of property and casualty insurance. The Company offered its insurance business to various businesses and individuals in 21 Mid-Atlantic, Midwestern, New England and Southern states, as of December 31, 2016. It has four segments: investment function, personal lines of insurance, commercial lines of insurance and investment in Donegal Financial Services Corporation (DFSC). Its insurance operations include two segments: personal lines of insurance and commercial lines of insurance. The personal lines of insurance, which its insurance subsidiaries write consists of private passenger automobile and homeowners insurance. The commercial lines of insurance, which its insurance subsidiaries write consists of commercial automobile, commercial multi-peril and workers’ compensation insurance. It holds interests in DFSC, which is a unitary savings and loan holding company.

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