Donegal Group (NASDAQ:DGICA) versus Hamilton Insurance Group (NYSE:HG) Head-To-Head Review

Hamilton Insurance Group (NYSE:HG) and Donegal Group (NASDAQ:DGICA) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Insider and Institutional Ownership

29.2% of Hamilton Insurance Group shares are owned by institutional investors. Comparatively, 28.0% of Donegal Group shares are owned by institutional investors. 6.6% of Donegal Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hamilton Insurance Group	N/A	N/A	N/A
Donegal Group	0.55%	0.15%	0.03%

Valuation & Earnings

This table compares Hamilton Insurance Group and Donegal Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hamilton Insurance Group	$1.57 billion	0.99	$258.73 million	N/A	N/A
Donegal Group	$943.73 million	0.48	$4.43 million	$0.16	84.69

Hamilton Insurance Group has higher revenue and earnings than Donegal Group.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hamilton Insurance Group and Donegal Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hamilton Insurance Group	0	0	5	0	3.00
Donegal Group	0	1	0	0	2.00

Hamilton Insurance Group currently has a consensus target price of $19.00, indicating a potential upside of 34.85%. Donegal Group has a consensus target price of $15.00, indicating a potential upside of 10.70%. Given Hamilton Insurance Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Hamilton Insurance Group is more favorable than Donegal Group.

Summary

Hamilton Insurance Group beats Donegal Group on 7 of the 11 factors compared between the two stocks.

About Hamilton Insurance Group

Hamilton Insurance Group, Ltd., through its subsidiaries, provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select, and Hamilton Re underwriting platforms. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property reinsurance and insurance; and specialty reinsurance solutions, including accident and health, aviation and space, crisis management, mortgage, financial lines, marine and energy, and multiline specialty. In addition, it offers accident and health, cyber, energy, environmental, financial lines, fine art and specie, kidnap and ransom, mergers and acquisitions, marine and energy liability, political risk and violence, professional liability, property binders, property direct and facultative, professional lines, space, upstream energy, excess casualty, war and terrorism, allied medical, management liability, medical professionals, general liability, products liability and contractors, and small business casualty insurance plans, as well as surety and treaty reinsurance products. The company was incorporated in 2013 and is headquartered in Pembroke, Bermuda.

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.