Donegal Group, Inc. (DGICA) vs Heritage Insurance Holdings, Inc. (HRTG)

Donegal Group, Inc. and Heritage Insurance Holdings, Inc. are both Insurance Property & Casualty companies. Heritage Insurance Holdings, Inc. is the larger, with a market value of $998.3M against $732.0M — 1.4× the size. Heritage Insurance Holdings, Inc. trades at the lower P/E: 4.8× against 9.7×. Heritage Insurance Holdings, Inc. grew revenue faster over the last twelve months: 1.54% against −3.40%. Heritage Insurance Holdings, Inc. has the higher net margin (25.2% vs 7.25%) and the higher return on invested capital (489.1% vs 8.10%). Across the 20 metrics below, Heritage Insurance Holdings, Inc. leads on 17 and Donegal Group, Inc. on 3.

Valuation

Metric DGICA HRTG Insurance Property & Casualty median
P/E 9.65 4.78 12.17
P/S 0.73 1.18 1.26
P/B 1.06 1.78 1.85
Price to free cash flow 13.76 3.36 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 10.36% 20.91% 8.20%
Free cash flow yield 7.27% 29.77% 11.86%

Profitability

Metric DGICA HRTG Insurance Property & Casualty median
Gross margin 0.00% 45.39% 37.39%
Operating margin 9.01% 34.46% 14.67%
Net margin 7.25% 25.19% 10.16%
Free cash flow margin 5.34% 35.21% 18.60%
Return on equity 10.73% 45.27% 16.59%
Return on assets 2.83% 8.63% 3.38%
Return on invested capital 8.10% 489.08% 9.43%

Growth

Metric DGICA HRTG Insurance Property & Casualty median
Revenue growth (TTM) (3.40%) 1.54% 5.70%
EPS growth (last fiscal year) 42.48% 214.43% 39.61%
Revenue growth, 5-year CAGR 4.69% 7.38% 9.23%
Net income growth, 5-year CAGR 8.48% 83.79% 10.09%

Health

Metric DGICA HRTG Insurance Property & Casualty median
Debt to equity 0.05 0.13 0.25
Current ratio 0.37 0.83 0.49
Net debt to EBITDA 0.08 (1.77) 0.08

Dividend

Metric DGICA HRTG Insurance Property & Casualty median
Dividend yield 4.02% — 1.56%
Payout ratio 0.39 — 0.15

Size

Metric DGICA HRTG Insurance Property & Casualty median
Market cap 731.97m 998.32m 2.64b

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