Financial Survey: Donegal Group (DGICB) vs. Its Peers

Donegal Group (NASDAQ:DGICB) is one of 57 public companies in the “INS – PROP&CASLTY” industry, but how does it weigh in compared to its rivals? We will compare Donegal Group to similar businesses based on the strength of its risk, earnings, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Donegal Group and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Donegal Group	0	1	0	0	2.00
Donegal Group Competitors	597	3380	3590	237	2.44

As a group, “INS – PROP&CASLTY” companies have a potential upside of 6.86%. Given Donegal Group’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Donegal Group has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

1.2% of Donegal Group shares are held by institutional investors. Comparatively, 65.0% of shares of all “INS – PROP&CASLTY” companies are held by institutional investors. 8.6% of Donegal Group shares are held by insiders. Comparatively, 10.7% of shares of all “INS – PROP&CASLTY” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Donegal Group has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500. Comparatively, Donegal Group’s rivals have a beta of 0.76, indicating that their average stock price is 24% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Donegal Group	$978.01 million	$79.34 million	9.44
Donegal Group Competitors	$25.72 billion	$4.08 billion	8.83

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

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	8.11%	12.81%	3.29%
Donegal Group Competitors	13.77%	13.35%	4.23%

Dividends

Donegal Group pays an annual dividend of $0.66 per share and has a dividend yield of 3.4%. Donegal Group pays out 32.2% of its earnings in the form of a dividend. As a group, “INS – PROP&CASLTY” companies pay a dividend yield of 0.9% and pay out 6.8% of their earnings in the form of a dividend. Donegal Group has raised its dividend for 5 consecutive years.

Summary

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

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, and Commercial Lines of Insurance. 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.