Goosehead Insurance (NASDAQ:GSHD) vs. Donegal Group (NASDAQ:DGICA) Head-To-Head Contrast

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

Volatility and Risk

Goosehead Insurance has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Donegal Group has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Goosehead Insurance	8.78%	-21.00%	9.43%
Donegal Group	7.38%	10.65%	2.83%

Earnings and Valuation

This table compares Goosehead Insurance and Donegal Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Goosehead Insurance	$365.30 million	4.32	$27.83 million	$1.37	32.40
Donegal Group	$978.01 million	0.68	$79.34 million	$1.93	9.34

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

Analyst Ratings

This is a breakdown of recent recommendations for Goosehead Insurance and Donegal Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Goosehead Insurance	1	6	7	0	2.43
Donegal Group	1	1	1	0	2.00

Goosehead Insurance currently has a consensus target price of $68.45, indicating a potential upside of 54.21%. Donegal Group has a consensus target price of $20.00, indicating a potential upside of 10.99%. Given Goosehead Insurance’s stronger consensus rating and higher possible upside, equities analysts plainly believe Goosehead Insurance is more favorable than Donegal Group.

Institutional and Insider Ownership

28.0% of Donegal Group shares are owned by institutional investors. 38.1% of Goosehead Insurance shares are owned by insiders. Comparatively, 2.8% of Donegal Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Goosehead Insurance beats Donegal Group on 9 of the 14 factors compared between the two stocks.

About Goosehead Insurance

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.

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.