Donegal Group (DGICA) versus Its Peers Head to Head Contrast

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

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	7.24%	10.49%	2.80%
Donegal Group Competitors	9.08%	-9.84%	4.11%

Risk & Volatility

Donegal Group has a beta of -0.03, meaning that its stock price is 103% less volatile than the S&P 500. Comparatively, Donegal Group’s peers have a beta of -1.59, meaning that their average stock price is 259% less volatile than the S&P 500.

Institutional & Insider Ownership

28.0% of Donegal Group shares are held by institutional investors. Comparatively, 55.8% of shares of all “Insurance” companies are held by institutional investors. 2.8% of Donegal Group shares are held by insiders. Comparatively, 13.5% of shares of all “Insurance” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Donegal Group	$978.01 million	$79.34 million	10.17
Donegal Group Competitors	$15.26 billion	$1.70 billion	34.36

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 Recommendations

This is a breakdown of current ratings and target prices for Donegal Group and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Donegal Group	0	2	1	0	2.33
Donegal Group Competitors	3338	15690	16539	742	2.40

Donegal Group presently has a consensus target price of $20.00, indicating a potential upside of 5.21%. As a group, “Insurance” companies have a potential upside of 4.74%. Given Donegal Group’s higher possible upside, research analysts plainly believe Donegal Group is more favorable than its peers.

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 31.0% of their earnings in the form of a dividend. Donegal Group has increased its dividend for 5 consecutive years.

Summary

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

Donegal Group Company Profile

Donegal Group Inc. is an insurance holding company that provides property and casualty insurance through its subsidiaries. Its offerings include personal lines such as automobile and homeowners insurance, as well as commercial coverage for businesses, including commercial automobile, workers’ compensation and package policies. The company distributes its products primarily through independent insurance agencies. Its operations serve customers in the Mid-Atlantic region and other parts of the eastern, southern and Midwestern United States.