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

Dividends

Donegal Group pays an annual dividend of $0.56 per share and has a dividend yield of 3.7%. 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 26.6% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Donegal Group and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Donegal Group $715.06 million $24.38 million 31.29
Donegal Group Competitors $11.75 billion $2.00 billion 35.28

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

Analyst Ratings

This is a summary of current recommendations and price targets for Donegal Group and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Donegal Group 0 2 0 0 2.00
Donegal Group Competitors 719 2533 2244 70 2.30

Donegal Group presently has a consensus price target of $18.00, indicating a potential upside of 17.42%. As a group, “Property & Casualty Insurance” companies have a potential upside of 2.64%. Given Donegal Group’s higher possible upside, research analysts clearly believe Donegal Group is more favorable than its peers.

Insider & Institutional Ownership

29.5% of Donegal Group shares are owned by institutional investors. Comparatively, 61.2% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 11.9% of Donegal Group shares are owned by company insiders. Comparatively, 15.3% of shares of all “Property & Casualty Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

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

Profitability

This table compares Donegal Group and its peers’ 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%

Summary

Donegal Group peers beat Donegal Group on 13 of the 15 factors compared.

Donegal Group Company Profile

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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