Skyward Specialty Insurance Group (NASDAQ:SKWD) versus Donegal Group (NASDAQ:DGICB) Head to Head Comparison

Donegal Group (NASDAQ:DGICB) and Skyward Specialty Insurance Group (NASDAQ:SKWD) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Donegal Group	6.77%	10.31%	2.69%
Skyward Specialty Insurance Group	11.36%	18.24%	3.69%

Risk and Volatility

Donegal Group has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Skyward Specialty Insurance Group has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Institutional & Insider Ownership

1.2% of Donegal Group shares are held by institutional investors. Comparatively, 94.8% of Skyward Specialty Insurance Group shares are held by institutional investors. 8.6% of Donegal Group shares are held by insiders. Comparatively, 8.5% of Skyward Specialty Insurance Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Donegal Group and Skyward Specialty Insurance Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Donegal Group	0	1	0	0	2.00
Skyward Specialty Insurance Group	0	3	6	2	2.91

Skyward Specialty Insurance Group has a consensus target price of $65.00, suggesting a potential upside of 22.92%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher possible upside, analysts clearly believe Skyward Specialty Insurance Group is more favorable than Donegal Group.

Valuation and Earnings

This table compares Donegal Group and Skyward Specialty Insurance Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Donegal Group	$978.01 million	0.76	$79.34 million	$1.69	11.85
Skyward Specialty Insurance Group	$1.42 billion	1.51	$170.03 million	$4.15	12.74

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

Summary

Skyward Specialty Insurance Group beats Donegal Group on 14 of the 15 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, 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.

About Skyward Specialty Insurance Group

Skyward Specialty Insurance Group, Inc., an insurance holding company, underwrites commercial property and casualty insurance products in the United States. It offers general liability, excess liability, professional liability, commercial auto, group accident and health, property, surety, and workers' compensation insurance products. Skyward Specialty Insurance Group, Inc. was incorporated in 2006 and is headquartered in Houston, Texas.