Donegal Group (NASDAQ:DGICB) and Enstar Group (NASDAQ:ESGR) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Donegal Group 1.06% -0.58% -0.13%
Enstar Group 16.11% 4.08% 0.89%

Risk and Volatility

Donegal Group has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Enstar Group has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Valuation and Earnings

This table compares Donegal Group and Enstar Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Donegal Group $771.83 million 0.54 -$32.76 million N/A N/A
Enstar Group $823.53 million 4.39 -$150.22 million N/A N/A

Donegal Group has higher earnings, but lower revenue than Enstar Group.

Institutional and Insider Ownership

1.6% of Donegal Group shares are owned by institutional investors. Comparatively, 71.0% of Enstar Group shares are owned by institutional investors. 7.2% of Donegal Group shares are owned by insiders. Comparatively, 9.4% of Enstar Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Donegal Group pays an annual dividend of $0.51 per share and has a dividend yield of 3.5%. Enstar Group does not pay a dividend.

Analyst Ratings

This is a summary of current ratings and price targets for Donegal Group and Enstar Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Donegal Group 0 0 0 0 N/A
Enstar Group 0 0 0 0 N/A

Summary

Enstar Group beats Donegal Group on 8 of the 10 factors compared between the two stocks.

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.

Enstar Group Company Profile

Enstar Group Limited acquires and manages insurance and reinsurance companies, and portfolios of insurance and reinsurance business in run-off. It operates in three segments: Non-Life Run-Off, Atrium, and StarStone. The Non-Life Run-Off segment engages in the running off property and casualty, and other non-life lines of businesses. It also provides consulting services, including claims inspection, claims validation, reinsurance asset collection, and IT consulting services to the insurance and reinsurance industry. The Atrium segment is involved in underwriting various classes, including marine, aviation, transit, property and casualty binding authorities, reinsurance, accident and health, and non marine direct and facultative. The StarStone segment offers a range of property, casualty, and specialty insurance products to multi-national, and small and middle-market clients. It operates in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and internationally. The company was formerly known as Castlewood Holdings Limited and changed its name to Enstar Group Limited in January 2007. Enstar Group Limited was founded in 2001 and is based in Hamilton, Bermuda.

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