Skyward Specialty Insurance Group (NASDAQ:SKWD – Get Free Report) and Donegal Group (NASDAQ:DGICB – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Insider and Institutional Ownership
94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. Comparatively, 1.2% of Donegal Group shares are owned by institutional investors. 8.5% of Skyward Specialty Insurance Group shares are owned by insiders. Comparatively, 8.6% of Donegal Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Skyward Specialty Insurance Group and Donegal Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Skyward Specialty Insurance Group | 11.36% | 18.24% | 3.69% |
| Donegal Group | 6.77% | 10.31% | 2.69% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Skyward Specialty Insurance Group | $1.42 billion | 1.45 | $170.03 million | $4.15 | 12.18 |
| Donegal Group | $978.01 million | 0.87 | $79.34 million | $1.69 | 13.53 |
Skyward Specialty Insurance Group has higher revenue and earnings than Donegal Group. Skyward Specialty Insurance Group is trading at a lower price-to-earnings ratio than Donegal Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Skyward Specialty Insurance Group has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Donegal Group has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Skyward Specialty Insurance Group and Donegal Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Skyward Specialty Insurance Group | 0 | 3 | 6 | 2 | 2.91 |
| Donegal Group | 0 | 1 | 0 | 0 | 2.00 |
Skyward Specialty Insurance Group currently has a consensus price target of $65.00, suggesting a potential upside of 28.56%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher probable upside, analysts clearly believe Skyward Specialty Insurance Group is more favorable than Donegal Group.
Summary
Skyward Specialty Insurance Group beats Donegal Group on 13 of the 15 factors compared between the two stocks.
About Skyward Specialty Insurance Group
Skyward Specialty Insurance Group, Inc., an insurance holding company, underwrites commercial property and casualty insurance products in the United States. It offers general liability, excess liability, professional liability, commercial auto, group accident and health, property, surety, and workers' compensation insurance products. Skyward Specialty Insurance Group, Inc. was incorporated in 2006 and is headquartered in Houston, Texas.
About Donegal Group
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, 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. 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.
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