United Fire Group (NASDAQ:UFCS) and Donegal Group (NASDAQ:DGICB) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Dividends

United Fire Group pays an annual dividend of $1.24 per share and has a dividend yield of 2.7%. Donegal Group pays an annual dividend of $0.51 per share and has a dividend yield of 4.0%. United Fire Group has increased its dividend for 5 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
United Fire Group 2.35% 1.63% 0.53%
Donegal Group 1.06% -0.58% -0.13%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for United Fire Group and Donegal Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Fire Group 0 1 0 0 2.00
Donegal Group 0 0 0 0 N/A

Risk & Volatility

United Fire Group has a beta of -0.03, meaning that its stock price is 103% less volatile than the S&P 500. Comparatively, Donegal Group has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Insider & Institutional Ownership

64.0% of United Fire Group shares are owned by institutional investors. Comparatively, 1.6% of Donegal Group shares are owned by institutional investors. 6.7% of United Fire Group 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares United Fire Group and Donegal Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Fire Group $1.07 billion 1.10 $27.65 million N/A N/A
Donegal Group $771.83 million 0.47 -$32.76 million N/A N/A

United Fire Group has higher revenue and earnings than Donegal Group.

Summary

United Fire Group beats Donegal Group on 8 of the 11 factors compared between the two stocks.

About United Fire Group

United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance, as well as assumed reinsurance products. Its commercial policies include fire and allied lines, other liability, automobile, workers' compensation, and surety coverage; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners. The company sells its products through a network of independent agencies. United Fire Group, Inc. was founded in 1946 and is headquartered in Cedar Rapids, Iowa.

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, 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. 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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