Reviewing Cna Financial (CNA) & Donegal Group (DGICB)

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

Dividends

Cna Financial pays an annual dividend of $1.40 per share and has a dividend yield of 3.1%. Donegal Group pays an annual dividend of $0.50 per share and has a dividend yield of 4.1%. Cna Financial pays out 41.4% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Cna Financial 11.00% 9.91% 2.01%
Donegal Group -2.65% -4.19% -1.00%

Volatility and Risk

Cna Financial has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Donegal Group has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Insider & Institutional Ownership

99.7% of Cna Financial shares are owned by institutional investors. Comparatively, 1.4% of Donegal Group shares are owned by institutional investors. 0.2% of Cna Financial shares are owned by company insiders. Comparatively, 7.2% of Donegal Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cna Financial $9.54 billion 1.28 $899.00 million $3.38 13.33
Donegal Group $739.03 million 0.46 $7.11 million N/A N/A

Cna Financial has higher revenue and earnings than Donegal Group.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cna Financial and Donegal Group, as provided by MarketBeat.

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

Summary

Cna Financial beats Donegal Group on 8 of the 11 factors compared between the two stocks.

Cna Financial Company Profile

CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company's property insurance products include property, marine, boiler, and machinery coverages; and casualty insurance products comprise workers compensation, general and product liability, commercial auto, and umbrella coverages. It also offers management and professional liability insurance and risk management services, and other specialized property and casualty coverages to various professional firms, including architects, real estate agents, and accounting and law firms; surety and fidelity bonds, and warranty and alternative risks products; directors and officers, employment practices, fiduciary and fidelity coverages to small and mid-size firms, public and private firms, and not-for-profit organizations; and professional and general liability, as well as associated standard property and casualty coverages for healthcare industry. In addition, the company offers long-tail exposures, including commercial automobile liability, workers' compensation, general and medical professional liability, other professional and management liability, and assumed reinsurance run-off and products liability; and short-tail exposures comprising property, commercial automobile physical damage, marine, surety, and warranty. CNA Financial Corporation markets its products through independent agents, brokers, and general underwriters to customers, including small, medium, and large businesses; insurance companies; associations; professionals; and other groups. It serves marine, property, financial services, healthcare, technology, oil and gas, construction, manufacturing, and life science industries. The company was founded in 1853 and is headquartered in Chicago, Illinois.

Donegal Group 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.

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