Head-To-Head Comparison: Donegal Group Inc. Class A (DGICA) & Enstar Group (ESGR)

Donegal Group Inc. Class A (NASDAQ: DGICA) and Enstar Group (NASDAQ:ESGR) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for Donegal Group Inc. Class A and Enstar Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Donegal Group Inc. Class A 0 1 1 0 2.50
Enstar Group 0 0 0 0 N/A

Donegal Group Inc. Class A currently has a consensus price target of $18.50, indicating a potential upside of 35.93%. Given Donegal Group Inc. Class A’s higher probable upside, research analysts plainly believe Donegal Group Inc. Class A is more favorable than Enstar Group.

Dividends

Donegal Group Inc. Class A pays an annual dividend of $0.57 per share and has a dividend yield of 4.2%. Enstar Group does not pay a dividend. Donegal Group Inc. Class A pays out 190.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

Net Margins Return on Equity Return on Assets
Donegal Group Inc. Class A -2.16% -2.89% -0.74%
Enstar Group 22.81% 6.69% 1.39%

Valuation and Earnings

This table compares Donegal Group Inc. Class A 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 Inc. Class A $739.03 million 0.52 $7.11 million $0.30 45.37
Enstar Group $1.11 billion 3.64 $311.45 million N/A N/A

Enstar Group has higher revenue and earnings than Donegal Group Inc. Class A.

Institutional & Insider Ownership

31.1% of Donegal Group Inc. Class A shares are held by institutional investors. Comparatively, 76.6% of Enstar Group shares are held by institutional investors. 13.1% of Donegal Group Inc. Class A shares are held by insiders. Comparatively, 10.0% of Enstar Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Donegal Group Inc. Class A has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Enstar Group has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Summary

Enstar Group beats Donegal Group Inc. Class A on 9 of the 13 factors compared between the two stocks.

Donegal Group Inc. Class A Company Profile

Donegal Group Inc., an insurance holding company, provides 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. Donegal Group Inc., through its interest in Donegal Financial Services Corporation, operates a savings bank. 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 large multi-national, and small and middle-market clients. The company 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 as a result of its merger with The Enstar Group, Inc. in January 2007. Enstar Group Limited was founded in 2001 and is headquartered in Hamilton, Bermuda.

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