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ALRS vs DGICA

ALRS
Alerus Financial Corporation
BEARISH
Price
$23.56
Market Cap
$598.5M
Sector
Financial Services
AI Confidence
85%
DGICA
Donegal Group Inc.
NEUTRAL
Price
$17.12
Market Cap
$633.5M
Sector
Financial Services
AI Confidence
80%

Valuation

P/E Ratio
ALRS
34.65
DGICA
7.85
Forward P/E
ALRS
8.54
DGICA
8.15
P/B Ratio
ALRS
1.06
DGICA
0.99
P/S Ratio
ALRS
2.67
DGICA
0.65
EV/EBITDA
ALRS
--
DGICA
5.91

Profitability

Gross Margin
ALRS
0.0%
DGICA
10.17%
Operating Margin
ALRS
-481.44%
DGICA
8.87%
Profit Margin
ALRS
7.79%
DGICA
8.11%
ROE
ALRS
3.29%
DGICA
13.38%
ROA
ALRS
0.33%
DGICA
2.62%

Growth

Revenue Growth
ALRS
-85.8%
DGICA
-3.9%
Earnings Growth
ALRS
--
DGICA
-33.3%

Financial Health

Debt/Equity
ALRS
--
DGICA
0.05
Current Ratio
ALRS
--
DGICA
0.49
Quick Ratio
ALRS
--
DGICA
0.15

Dividends

Dividend Yield
ALRS
3.57%
DGICA
4.26%
Payout Ratio
ALRS
122.06%
DGICA
33.03%

AI Verdict

ALRS BEARISH

ALRS exhibits weak financial health with a Piotroski F-Score of 4/9, indicating marginal stability, and lacks an Altman Z-Score, raising unquantified distress risk. The stock trades at a high forward P/E of 8.54 but has a current P/E of 34.65, suggesting overvaluation relative to near-term earnings. Despite strong earnings surprises in recent quarters and a 93.2% YoY EPS growth, the company reports a negative operating margin of -481.44% and an 85.8% revenue decline, signaling severe operational distress. The dividend payout ratio of 122.06% is unsustainable, and technical trends are bearish, reinforcing caution. The Graham Number of $18.44 implies a defensive fair value below the current price of $23.56.

Strengths
Strong recent earnings surprise history with average +30.65% beat over last 4 quarters
Significant year-over-year EPS growth of 93.2% and +30.8% Q/Q growth
Positive analyst target price of $26.60, indicating upside potential
Risks
Piotroski F-Score of 4/9 indicates weak financial health and marginal stability
Negative operating margin (-481.44%) and zero gross margin signal severe operational inefficiency
85.8% YoY revenue decline suggests fundamental business deterioration
DGICA NEUTRAL

DGICA shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Attractive valuation with P/E of 7.9
Undervalued vs Graham Number ($29.15)
Low debt with D/E ratio of 0.05
Risks
Weak financial trend (Piotroski F-Score: 3/9)
Declining revenue (-3.9%)

Compare Another Pair

ALRS vs DGICA: Head-to-Head Comparison

This page compares Alerus Financial Corporation (ALRS) and Donegal Group Inc. (DGICA) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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