Donegal Group (NASDAQ:DGICA) and Trean Insurance Group (NASDAQ:TIG) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Volatility & Risk
Donegal Group has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500. Comparatively, Trean Insurance Group has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500.
31.5% of Donegal Group shares are owned by institutional investors. Comparatively, 34.2% of Trean Insurance Group shares are owned by institutional investors. 10.0% of Donegal Group shares are owned by company insiders. Comparatively, 10.5% of Trean Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Donegal Group and Trean Insurance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Trean Insurance Group||35.54%||8.29%||2.48%|
This is a summary of current ratings and target prices for Donegal Group and Trean Insurance Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Trean Insurance Group||0||1||1||0||2.50|
Trean Insurance Group has a consensus price target of $15.00, suggesting a potential upside of 44.37%. Given Trean Insurance Group’s higher possible upside, analysts clearly believe Trean Insurance Group is more favorable than Donegal Group.
Valuation and Earnings
This table compares Donegal Group and Trean Insurance Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Donegal Group||$777.82 million||0.58||$52.81 million||$1.76||8.18|
|Trean Insurance Group||$202.11 million||2.63||$90.77 million||$0.74||14.04|
Trean Insurance Group has lower revenue, but higher earnings than Donegal Group. Donegal Group is trading at a lower price-to-earnings ratio than Trean Insurance Group, indicating that it is currently the more affordable of the two stocks.
Trean Insurance Group beats Donegal Group on 10 of the 13 factors compared between the two stocks.
Donegal Group Company Profile
Donegal Group, Inc. is an insurance holding company, which engages in the provision of property and casualty insurance to businesses and individuals. It operates through the following segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance. The Investment Function segment covers investment activities. The Personal Lines of Insurance segment consists of homeowners and private passenger automobile policies. The Commercial Lines of Insurance segment includes commercial automobile, commercial multi-peril, and workers compensation policies. The company was founded on August 26, 1986 and is headquartered in Marietta, PA.
Trean Insurance Group Company Profile
Trean Insurance Group, Inc. underwrites specialty casualty insurance products in the United States. The company underwrites business, predominantly workers' compensation, accident and health, and medical professional liability products. It also offers a variety of services, including issuing carrier, claims administration, and reinsurance brokerage services. The company offers its products through programs and managing general agents. Trean Insurance Group, Inc. was founded in 1996 and is based in Wayzata, Minnesota.
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