Donegal Group (NASDAQ:DGICA – Get Rating) and MS&AD Insurance Group (OTCMKTS:MSADY – Get Rating) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Institutional and Insider Ownership
63.7% of Donegal Group shares are owned by institutional investors. Comparatively, 0.0% of MS&AD Insurance Group shares are owned by institutional investors. 10.0% of Donegal Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations and price targets for Donegal Group and MS&AD Insurance Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Donegal Group | 0 | 0 | 0 | 0 | N/A |
| MS&AD Insurance Group | 0 | 0 | 0 | 0 | N/A |
Valuation and Earnings
This table compares Donegal Group and MS&AD Insurance Group’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Donegal Group | $816.47 million | 0.59 | $25.25 million | $0.01 | 1,479.48 |
| MS&AD Insurance Group | $45.71 billion | 0.38 | $2.34 billion | $1.57 | 9.33 |
MS&AD Insurance Group has higher revenue and earnings than Donegal Group. MS&AD Insurance Group is trading at a lower price-to-earnings ratio than Donegal Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Donegal Group and MS&AD Insurance Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Donegal Group | -0.02% | 1.43% | 0.33% |
| MS&AD Insurance Group | 3.92% | 6.95% | 0.91% |
Dividends
Donegal Group pays an annual dividend of $0.66 per share and has a dividend yield of 4.5%. MS&AD Insurance Group pays an annual dividend of $0.25 per share and has a dividend yield of 1.7%. Donegal Group pays out 6,606.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MS&AD Insurance Group pays out 15.9% of its earnings in the form of a dividend. Donegal Group has raised its dividend for 9 consecutive years. Donegal Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
MS&AD Insurance Group beats Donegal Group on 7 of the 13 factors compared between the two stocks.
About Donegal Group
(Get Rating)
Donegal Group Inc., an insurance holding company, provides personal and commercial lines of 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 approximately 2,300 independent insurance agencies. Donegal Group Inc. was incorporated in 1986 and is headquartered in Marietta, Pennsylvania.
About MS&AD Insurance Group
(Get Rating)
MS&AD Insurance Group Holdings, Inc., an insurance holding company, provides insurance and financial services worldwide. The company offers fire and allied, marine, personal accident, voluntary automobile, compulsory automobile liability, and others non-life insurance products; life insurance products; and reinsurance services. It also provides risk-related services. The company was formerly known as Mitsui Sumitomo Insurance Group Holdings, Inc. and changed its name to MS&AD Insurance Group Holdings, Inc. in April 2010. MS&AD Insurance Group Holdings, Inc. was founded in 1918 and is headquartered in Tokyo, Japan.
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