Donegal Group (NASDAQ:DGICB) versus Kingstone Companies (NASDAQ:KINS) Head-To-Head Comparison

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Kingstone Companies and Donegal Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingstone Companies	0	1	1	0	2.50
Donegal Group	0	1	0	0	2.00

Risk and Volatility

Kingstone Companies has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Donegal Group has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500.

Dividends

Kingstone Companies pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Donegal Group pays an annual dividend of $0.70 per share and has a dividend yield of 2.5%. Kingstone Companies pays out 8.4% 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. Donegal Group has increased its dividend for 5 consecutive years. Donegal Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kingstone Companies	16.83%	34.79%	9.28%
Donegal Group	7.24%	10.45%	2.79%

Institutional and Insider Ownership

14.9% of Kingstone Companies shares are owned by institutional investors. Comparatively, 1.2% of Donegal Group shares are owned by institutional investors. 4.3% of Kingstone Companies shares are owned by company insiders. Comparatively, 8.6% of Donegal Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Kingstone Companies and Donegal Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingstone Companies	$214.87 million	1.53	$40.77 million	$2.87	7.89
Donegal Group	$978.01 million	1.08	$79.34 million	$1.72	16.40

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

Summary

Kingstone Companies beats Donegal Group on 10 of the 16 factors compared between the two stocks.

About Kingstone Companies

Kingstone Companies, Inc. is a holding company whose principal operating subsidiary, Kingstone Insurance Company, provides property and casualty insurance. The company focuses primarily on personal insurance for homeowners and other property owners. Its products include homeowners, dwelling fire, renters and personal umbrella coverage, as well as commercial insurance for businesses. Kingstone distributes its policies through independent agents and brokers. The company’s insurance operations are concentrated in New York, where it serves individuals and businesses with coverage tailored to the regional market.

About Donegal Group

Donegal Group is an insurance holding company based in Marietta, Pennsylvania. Through its property and casualty insurance subsidiaries, it provides coverage to individuals and businesses, primarily through a network of independent insurance agencies. The company’s products include personal auto and homeowners insurance, as well as commercial auto, workers’ compensation and other business insurance. Its operations serve customers across multiple states, with a regional focus in the eastern United States.