Donegal Group (DGICA) versus Its Competitors Head to Head Analysis

Donegal Group (NASDAQ:DGICA) is one of 311 publicly-traded companies in the “Insurance” industry, but how does it compare to its rivals? We will compare Donegal Group to similar businesses based on the strength of its dividends, profitability, earnings, institutional ownership, risk, valuation and analyst recommendations.

Dividends

Donegal Group pays an annual dividend of $0.77 per share and has a dividend yield of 4.1%. Donegal Group pays out 41.2% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 30.4% of their earnings in the form of a dividend. Donegal Group has increased its dividend for 5 consecutive years.

Insider & Institutional Ownership

28.0% of Donegal Group shares are owned by institutional investors. Comparatively, 55.9% of shares of all “Insurance” companies are owned by institutional investors. 2.8% of Donegal Group shares are owned by company insiders. Comparatively, 13.4% of shares of all “Insurance” companies are owned by company 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.

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	7.38%	10.65%	2.83%
Donegal Group Competitors	9.36%	-9.77%	4.23%

Analyst Ratings

This is a summary of recent ratings and target prices 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	1	0	2.33
Donegal Group Competitors	3321	15635	16466	738	2.40

Donegal Group presently has a consensus price target of $20.00, indicating a potential upside of 6.67%. As a group, “Insurance” companies have a potential upside of 5.34%. Given Donegal Group’s higher possible upside, analysts plainly believe Donegal Group is more favorable than its rivals.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Donegal Group	$978.01 million	$79.34 million	10.03
Donegal Group Competitors	$15.49 billion	$1.70 billion	34.51

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 more affordable than other companies in its industry.

Volatility & Risk

Donegal Group has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500. Comparatively, Donegal Group’s rivals have a beta of -1.51, suggesting that their average share price is 251% less volatile than the S&P 500.

Summary

Donegal Group rivals beat Donegal Group on 11 of the 15 factors compared.

Donegal Group Company Profile

Donegal Group Inc., an insurance holding company, provides property and casualty insurance to businesses and individuals. It operates through three 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; and homeowners policies, which provide coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft, as well as liability of the insured arising from injury to other persons or their property. It also 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 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 primarily to Mid-Atlantic, Midwestern, New England, Southern, and Southwestern regions through independent insurance agencies. Donegal Group Inc. was incorporated in 1986 and is based in Marietta, Pennsylvania. Donegal Group Inc. operates as a subsidiary of Donegal Mutual Insurance Company.