Comparing Kingsway Financial Services (NYSE:KFS) & Donegal Group (NYSE:DGICB)

Kingsway Financial Services (NYSE:KFS) and Donegal Group (NASDAQ:DGICB) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Valuation and Earnings

This table compares Kingsway Financial Services and Donegal Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kingsway Financial Services $52.64 million 1.22 -$26.68 million N/A N/A
Donegal Group $771.83 million 0.52 -$32.76 million N/A N/A

Kingsway Financial Services has higher earnings, but lower revenue than Donegal Group.

Risk and Volatility

Kingsway Financial Services has a beta of -0.22, indicating that its stock price is 122% less volatile than the S&P 500. Comparatively, Donegal Group has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Profitability

This table compares Kingsway Financial Services and Donegal Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kingsway Financial Services -30.73% -57.59% -4.04%
Donegal Group 1.75% 0.39% 0.09%

Dividends

Donegal Group pays an annual dividend of $0.51 per share and has a dividend yield of 3.6%. Kingsway Financial Services does not pay a dividend.

Insider & Institutional Ownership

27.8% of Kingsway Financial Services shares are held by institutional investors. Comparatively, 1.6% of Donegal Group shares are held by institutional investors. 49.0% of Kingsway Financial Services shares are held by insiders. Comparatively, 7.2% of Donegal Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Kingsway Financial Services and Donegal Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kingsway Financial Services 0 0 0 0 N/A
Donegal Group 0 0 0 0 N/A

Summary

Donegal Group beats Kingsway Financial Services on 6 of the 10 factors compared between the two stocks.

Kingsway Financial Services Company Profile

Kingsway Financial Services Inc., through its subsidiaries, provides property and casualty insurance products in the United States. The company operates through three segments: Insurance Underwriting, Extended Warranty, and Leased Real Estate. The Insurance Underwriting segment offers various automobile insurance products, including liability insurance that covers claims against its insured's responsible for automobile accidents; accident benefit policies or personal injury protection policies that provide coverage for loss of income, medical, and rehabilitation expenses for insured persons who are injured in an automobile accident; and physical damage policies, which cover damages to an insured automobile arising from a collision with another object, as well as from other risks, such as fire or theft. The Extended Warranty segment markets and administers vehicle service agreements and related products for new and used automobiles. This segment also markets and distributes warranty products to manufacturers, distributors, and installers of heating, ventilation and air conditioning, standby generator, commercial LED lighting, and refrigeration equipment; and equipment breakdown and maintenance support services to companies. The Leased Real Estate segment owns the Real Property, which is subject to a long-term triple net lease agreement. The company offers its products and services to credit unions, consumers, and businesses through a network of independent agencies. Kingsway Financial Services Inc. was founded in 1989 and is based in Itasca, Illinois.

Donegal Group Company Profile

Donegal Group Inc., an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. It operates through four segments: Investment Function, Personal Lines of Insurance, Commercial Lines of Insurance, and Investment in DFSC. The company offers private passenger automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents, as well as protection against loss from damage to automobiles. It also offers homeowners policies, which provide coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft; and liability of the insured arising from injury to other persons or their property. In addition, the company offers commercial automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents and protection against loss from damage to automobiles owned by the insured; commercial multi-peril policies that provide protection to businesses against various perils, primarily combining liability and physical damage coverages; and workers' compensation policies, which provide benefits to employees for injuries sustained during employment. The company markets its insurance products through a network of approximately 2,400 independent insurance agencies. Donegal Group Inc. was founded in 1986 and is headquartered in Marietta, Pennsylvania. Donegal Group Inc. is a subsidiary of Donegal Mutual Insurance Company.

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