Donegal Group (NASDAQ:DGICA) vs. Fundamental Global (NASDAQ:FGF) Financial Analysis

Fundamental Global (NASDAQ:FGF) and Donegal Group (NASDAQ:DGICA) are both small-cap multi-sector conglomerates companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fundamental Global	20.87%	-46.21%	-17.25%
Donegal Group	2.54%	3.95%	0.84%

Volatility and Risk

Fundamental Global has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Donegal Group has a beta of -0.06, meaning that its stock price is 106% less volatile than the S&P 500.

Earnings & Valuation

This table compares Fundamental Global and Donegal Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fundamental Global	$26.84 million	1.33	$3.85 million	$1.31	23.67
Donegal Group	$927.34 million	0.58	$4.43 million	$0.76	20.78

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

Analyst Ratings

This is a summary of recent ratings for Fundamental Global and Donegal Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fundamental Global	0	0	0	0	0.00
Donegal Group	0	1	0	0	2.00

Donegal Group has a consensus target price of $15.00, indicating a potential downside of 5.00%. Given Donegal Group’s stronger consensus rating and higher probable upside, analysts clearly believe Donegal Group is more favorable than Fundamental Global.

Institutional & Insider Ownership

3.1% of Fundamental Global shares are owned by institutional investors. Comparatively, 28.0% of Donegal Group shares are owned by institutional investors. 62.7% of Fundamental Global shares are owned by insiders. Comparatively, 6.6% of Donegal Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Donegal Group beats Fundamental Global on 7 of the 13 factors compared between the two stocks.

About Fundamental Global

Fundamental Global Inc. engages in reinsurance, merchant banking, and asset management business. The company offers initial public offering services. It also offers specialty property and casualty reinsurance services. In addition, the company provides investment advisory services. The company was formerly known as Ballantyne Strong, Inc. and changed its name to FG Group Holdings Inc. in December 2022. Fundamental Global Inc. was founded in 1932 and is based in Mooresville, North Carolina.

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.