Critical Survey: Greenlight Capital Re (NASDAQ:GLRE) versus Donegal Group (NASDAQ:DGICB)

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

Dividends

Donegal Group pays an annual dividend of $0.51 per share and has a dividend yield of 4.3%. Greenlight Capital Re does not pay a dividend.

Earnings & Valuation

This table compares Donegal Group and Greenlight Capital Re’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Donegal Group $771.83 million 0.45 -$32.76 million N/A N/A
Greenlight Capital Re $183.03 million 2.04 -$350.05 million N/A N/A

Donegal Group has higher revenue and earnings than Greenlight Capital Re.

Volatility and Risk

Donegal Group has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Greenlight Capital Re has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Donegal Group and Greenlight Capital Re, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Donegal Group 0 0 0 0 N/A
Greenlight Capital Re 0 0 0 0 N/A

Insider & Institutional Ownership

1.6% of Donegal Group shares are owned by institutional investors. Comparatively, 50.4% of Greenlight Capital Re shares are owned by institutional investors. 7.2% of Donegal Group shares are owned by insiders. Comparatively, 21.4% of Greenlight Capital Re shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Donegal Group and Greenlight Capital Re’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Donegal Group 2.25% 1.94% 0.44%
Greenlight Capital Re -10.90% -11.06% -3.76%

Summary

Donegal Group beats Greenlight Capital Re on 6 of the 10 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, 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.

About Greenlight Capital Re

Greenlight Capital Re, Ltd., through its subsidiaries, operates as a property and casualty reinsurer worldwide. The company offers various property reinsurance products and services, including automobile physical damage; personal lines, such as homeowners' insurance; and commercial lines. It also provides casualty reinsurance products and services comprising general liability, motor liability, professional liability, and worker's compensation; and accident and health, mortgage insurance, surety, trade credit, marine, aviation, energy, cyber, and terrorism products. The company markets its products through reinsurance brokers. Greenlight Capital Re, Ltd. was founded in 2004 and is headquartered in Grand Cayman, the Cayman Islands.

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.