Analyzing Global Indemnity (GBLI) and Donegal Group (DGICB)

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

Earnings and Valuation

This table compares Global Indemnity and Donegal Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Indemnity $485.52 million 1.12 -$9.55 million N/A N/A
Donegal Group $739.03 million 0.46 $7.11 million N/A N/A

Donegal Group has higher revenue and earnings than Global Indemnity.

Profitability

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

Net Margins Return on Equity Return on Assets
Global Indemnity -1.25% 2.21% 0.79%
Donegal Group -2.65% -4.19% -1.00%

Dividends

Global Indemnity pays an annual dividend of $1.00 per share and has a dividend yield of 2.6%. Donegal Group pays an annual dividend of $0.50 per share and has a dividend yield of 4.2%.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Global Indemnity and Donegal Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Indemnity 0 0 0 0 N/A
Donegal Group 0 0 0 0 N/A

Volatility & Risk

Global Indemnity has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Donegal Group has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Institutional & Insider Ownership

56.2% of Global Indemnity shares are held by institutional investors. Comparatively, 1.6% of Donegal Group shares are held by institutional investors. 41.4% of Global Indemnity shares are held by insiders. Comparatively, 7.2% of Donegal Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Global Indemnity beats Donegal Group on 6 of the 10 factors compared between the two stocks.

About Global Indemnity

Global Indemnity Limited, through its subsidiaries, provides insurance and reinsurance products and services in the United States and internationally. The company operates through three segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Commercial Lines segment distributes property, general liability, casualty, and professional lines products, as well as products for vacant, and under construction and renovation dwellings. This segment primarily serves small commercial businesses through a network of wholesale general agents, program administrators, brokers, aggregators, and retail agents. The Personal Lines segment offers specialty personal lines and agricultural coverage, including agriculture, mobile homes, manufactured homes, homeowners, collectibles, and watersports primarily through retail agents, wholesale general agents, and brokers. The Reinsurance Operations segment provides third party treaty reinsurance solutions to specialty property and casualty insurance, and reinsurance companies; and professional liability products to companies through brokers, as well as on a direct basis. The company was incorporated in 2016 and is based in George Town, the Cayman Islands.

About Donegal Group

Donegal Group Inc., an insurance holding company, provides 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. Donegal Group Inc., through its interest in Donegal Financial Services Corporation, operates a savings bank. 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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