Donegal Group, Inc. (DGICB) vs Root, Inc. (ROOT)

Donegal Group, Inc. and Root, Inc. are both Insurance Property & Casualty companies. Root, Inc. is the larger, with a market value of $750.2M against $446.3M — 1.7× the size. Donegal Group, Inc. trades at the lower P/E: 10.2× against 12.8×. Root, Inc. grew revenue faster over the last twelve months: 14.9% against −3.14%. Donegal Group, Inc. has the higher net margin (7.38% vs 3.71%) and the lower return on invested capital (8.21% vs 85.8%). Across the 22 metrics below, Root, Inc. leads on 14 and Donegal Group, Inc. on 8.

Valuation

Metric DGICB ROOT Insurance Property & Casualty median
P/E 10.22 12.78 10.29
P/S 0.70 0.47 1.17
P/B 1.01 2.27 1.83
Price to free cash flow 11.55 4.18 7.48
EV/EBITDA 7.49 3.68 7.49
EV/Sales 0.71 0.23 1.13
Earnings yield 9.78% 7.83% 9.50%
Free cash flow yield 8.66% 23.91% 13.29%

Profitability

Metric DGICB ROOT Insurance Property & Casualty median
Gross margin 24.57% 39.30% 41.16%
Operating margin 9.25% 5.51% 15.09%
Net margin 7.38% 3.71% 11.51%
Free cash flow margin 6.06% 11.43% 17.59%
Return on equity 11.18% 20.34% 18.19%
Return on assets 2.91% 3.57% 3.74%
Return on invested capital 8.21% 85.75% 12.06%

Growth

Metric DGICB ROOT Insurance Property & Casualty median
Revenue growth (TTM) (3.14%) 14.86% 8.69%
EPS growth (last fiscal year) 45.65% 28.96% —
Revenue growth, 5-year CAGR 4.69% 34.33% 9.23%
Net income growth, 5-year CAGR 8.48% 0.00% 10.09%

Health

Metric DGICB ROOT Insurance Property & Casualty median
Debt to equity 0.05 0.45 0.25
Current ratio 0.37 1.01 0.42
Net debt to EBITDA 0.08 (6.65) 0.08

Dividend

Metric DGICB ROOT Insurance Property & Casualty median
Dividend yield 4.42% — 2.79%
Payout ratio 5.75 0.00 0.27

Size

Metric DGICB ROOT Insurance Property & Casualty median
Market cap 446.25m 750.15m 2.44b

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