Donegal Group (NASDAQ:DGICB – Get Free Report) and Fidelis Insurance (NYSE:FIHL – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.
Dividends
Donegal Group pays an annual dividend of $0.70 per share and has a dividend yield of 3.8%. Fidelis Insurance pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Donegal Group pays out 39.3% of its earnings in the form of a dividend. Fidelis Insurance pays out 27.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Donegal Group has raised its dividend for 5 consecutive years. Donegal Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Donegal Group and Fidelis Insurance”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Donegal Group | $978.01 million | 0.69 | $79.34 million | $1.78 | 10.28 |
| Fidelis Insurance | $2.17 billion | 1.08 | $225.50 million | $2.21 | 10.99 |
Fidelis Insurance has higher revenue and earnings than Donegal Group. Donegal Group is trading at a lower price-to-earnings ratio than Fidelis Insurance, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Donegal Group and Fidelis Insurance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Donegal Group | 7.38% | 10.65% | 2.83% |
| Fidelis Insurance | 9.02% | 8.62% | 1.62% |
Insider & Institutional Ownership
1.2% of Donegal Group shares are owned by institutional investors. Comparatively, 82.0% of Fidelis Insurance shares are owned by institutional investors. 8.6% of Donegal Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Donegal Group has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500. Comparatively, Fidelis Insurance has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for Donegal Group and Fidelis Insurance, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Donegal Group | 0 | 1 | 0 | 0 | 2.00 |
| Fidelis Insurance | 2 | 2 | 3 | 0 | 2.14 |
Fidelis Insurance has a consensus target price of $21.92, indicating a potential downside of 9.73%. Given Fidelis Insurance’s stronger consensus rating and higher possible upside, analysts clearly believe Fidelis Insurance is more favorable than Donegal Group.
Summary
Fidelis Insurance beats Donegal Group on 12 of the 17 factors compared between the two stocks.
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.
About Fidelis Insurance
Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.
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