Donegal Group (NASDAQ:DGICA – Get Free Report) and Goosehead Insurance (NASDAQ:GSHD – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
28.0% of Donegal Group shares are owned by institutional investors. 2.8% of Donegal Group shares are owned by insiders. Comparatively, 38.1% of Goosehead Insurance shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and price targets for Donegal Group and Goosehead Insurance, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Donegal Group | 1 | 1 | 1 | 0 | 2.00 |
| Goosehead Insurance | 1 | 7 | 6 | 1 | 2.47 |
Profitability
This table compares Donegal Group and Goosehead 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% |
| Goosehead Insurance | 8.78% | -21.00% | 9.43% |
Earnings & Valuation
This table compares Donegal Group and Goosehead Insurance”s top-line revenue, earnings per share 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 | $1.93 | 9.45 |
| Goosehead Insurance | $365.30 million | 4.27 | $27.83 million | $1.37 | 32.09 |
Donegal Group has higher revenue and earnings than Goosehead Insurance. Donegal Group is trading at a lower price-to-earnings ratio than Goosehead Insurance, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Donegal Group has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500. Comparatively, Goosehead Insurance has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.
Summary
Goosehead Insurance beats Donegal Group on 10 of the 15 factors compared between the two stocks.
About Donegal Group
Donegal Group Inc., an insurance holding company, provides property and casualty insurance to businesses and individuals. It operates through three 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; and homeowners policies, which provide coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft, as well as liability of the insured arising from injury to other persons or their property. It also 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 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 primarily to Mid-Atlantic, Midwestern, New England, Southern, and Southwestern regions through independent insurance agencies. Donegal Group Inc. was incorporated in 1986 and is based in Marietta, Pennsylvania. Donegal Group Inc. operates as a subsidiary of Donegal Mutual Insurance Company.
About Goosehead Insurance
Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.
Receive News & Ratings for Donegal Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Donegal Group and related companies with MarketBeat.com's FREE daily email newsletter.
