Donegal Group (NASDAQ:DGICB) vs. F&G Annuities & Life (NYSE:FG) Head to Head Review

F&G Annuities & Life (NYSE:FG) and Donegal Group (NASDAQ:DGICB) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for F&G Annuities & Life and Donegal Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
F&G Annuities & Life	2	2	0	0	1.50
Donegal Group	0	1	0	0	2.00

F&G Annuities & Life presently has a consensus target price of $24.00, indicating a potential upside of 13.64%. Given F&G Annuities & Life’s higher possible upside, research analysts clearly believe F&G Annuities & Life is more favorable than Donegal Group.

Earnings and Valuation

This table compares F&G Annuities & Life and Donegal Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
F&G Annuities & Life	$5.73 billion	0.48	$265.00 million	$2.93	7.21
Donegal Group	$963.18 million	0.96	$79.34 million	$1.72	14.53

F&G Annuities & Life has higher revenue and earnings than Donegal Group. F&G Annuities & Life is trading at a lower price-to-earnings ratio than Donegal Group, indicating that it is currently the more affordable of the two stocks.

Dividends

F&G Annuities & Life pays an annual dividend of $1.00 per share and has a dividend yield of 4.7%. Donegal Group pays an annual dividend of $0.70 per share and has a dividend yield of 2.8%. F&G Annuities & Life pays out 34.1% of its earnings in the form of a dividend. Donegal Group pays out 40.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. F&G Annuities & Life has raised its dividend for 2 consecutive years and Donegal Group has raised its dividend for 5 consecutive years. F&G Annuities & Life is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

F&G Annuities & Life has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Donegal Group has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500.

Profitability

This table compares F&G Annuities & Life and Donegal Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
F&G Annuities & Life	6.89%	10.28%	0.50%
Donegal Group	7.24%	10.49%	2.80%

Institutional and Insider Ownership

95.9% of F&G Annuities & Life shares are held by institutional investors. Comparatively, 1.2% of Donegal Group shares are held by institutional investors. 2.5% of F&G Annuities & Life shares are held by company insiders. Comparatively, 8.6% of Donegal Group shares are held 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.

About F&G Annuities & Life

F&G Annuities & Life, Inc. engages in the provision of fixed annuity and life insurance products. It specializes in life insurance, annuities, retirement planning and wealth transfer. The company was founded in 1959 and is headquartered in Des Moines, IA.

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, 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. 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.