So What’s Better: State Auto Financial Corporation ($STFC) Or Donegal Group, Inc. ($DGICA)?

2019-08-20 | Welcome! Today we compared how two different stocks in the Property-Casualty Insurers industry are trading: State Auto Financial Corporation and Donegal Group, Inc.. While these two companies may have very different market capitalizations and balance sheets, they are worth comparing given how they are in the same sector. Below you’ll see how the different technical indicators differ between these two stocks, and we’ll also show what Trading View thinks of them based on the technical analysis. But before we get ahead of ourselves, please note that this is technical analysis only (ie. analyzing how these companies are trading, not digging into the company fundamentals), and therefore you should not rely only on this to guide you on whether you should buy or sell anything – take it with a grain of salt only, and pay attention to the disclaimer below. With that said, many traders find value in technical analysis and others even swear by it, so if that is you, I hope my analysis will be of use to you. Let’s get to it…

First things first: during its last day of trading, State Auto Financial Corporation opened at 33.42, got to a maximum price of 33.42 and dropped to as low as 32.95 before finishing the session at 33.12. In total there were 27100 shares traded, which is enough to conduct our analysis. Compare that now to Donegal Group, Inc., which opened at 15.0, had a high of 15.0, a low of 14.82, closed at 14.91 and had a total volume of 8600.

VOLUME ANALYSIS: Generally, the higher the volume indicators are, the better – you need liquidity to trade, after all. All of the volume indicators are as follows… (click here for an explanation on volume)

Volume Indicator State Auto Financial Corporation Donegal Group, Inc.
Accumulation-distribution index 110.99262 144.368
on-balance volume -33.03 14.93
chaikin money flow

0.71471 2.50168
force index

0.1813 -0.0017
ease of movement rating

0.00548 8e-05
volume-price trend

-0.73707 0.80222
negative volume index

1000.0 1000.0

VOLATILITY ANALYSIS: Now to compare the volatility between these two companies… (click here for an explanation on volatility)

Volatility Indicator State Auto Financial Corporation Donegal Group, Inc.
Average true range 0.37647 0.18529
Bolinger bands 33.17855 14.83914
Upper bollinger band 32.47145 14.81086
Lower bollinger band

32.95 14.82
Bollinger high band indicator

nan nan
Bollinger high low indicator

1.0 1.0
Central keltner channel

33.26333 14.94
High band keltner channel

33.26333 14.94
Low band keltner channel

33.26333 14.94
High band keltner channel indicator

1.0 1.0
Low band keltner channel indicator

1.0 1.0
Donchain channel high band

32.95 14.82
Donchain channel low band

32.95 14.82
Donchain channel high band indicator

1.0 1.0
Donchain channel low band indicator

1.0 1.0

TREND ANALYSIS: Now for the most interesting and detailed part, the trend. Where is the stock actually going? Let’s compare the indicators… (click here for an explanation on trend)

Trend Indicator State Auto Financial Corporation Donegal Group, Inc.
Moving Average Convergence Divergence (MACD) trend_macd 0.00022
MACD signal -0.00312 0.00012
MACD difference -0.00249 0.0001
fast Exponential Moving Average (EMA) indicator

32.95 14.82
slow Exponential Moving Average (EMA) indicator

32.95 14.82
Average Directional Movement Index (ADX)

unknown unknown
ADX positive

20.0 20.0
ADX negative

20.0 20.0
positive Vortex Indicator (VI)

1.0 1.0
negative VI

1.0 1.0
trend vortex difference

0.11692 0.3598

-1.97444 3.08435
Mass Index (MI)

1.8 1.8
Commodity Channel Index (CCI)

-66.66667 -66.66667
Detrended Price Oscillator (DPO)

0.75614 -0.76108
KST Oscillator (KST)

-22.43333 54.13518
KST Oscillator (KST Signal)

-22.43333 54.13518
KST difference

-1.85426 0.17782
Ichimoku rating

33.42 15.0
Ichimoku B rating

33.42 15.0
Ichimoku visual trend A

34.14125 14.4236
Ichimoku visual trend B

33.90423 14.51373
Aroon Indicator (AI)

4.0 4.0
AI indicator down

4.0 4.0
AI difference

-4.0 4.0

MOMENTUM ANALYSIS: What about momentum? Let’s dive into it… (click here for an explanation on momentum)

Momentum Indicator State Auto Financial Corporation Donegal Group, Inc.
Relative Strength Index (RSI) 50.0 50.0
Money Flow Index (MFI) 20.26028 100.0
True Strength Index (TSI) -100.0 100.0
ultimate oscillator

-164.25469 80.87308
stochastic oscillator

50.0 50.0
stochastic oscillator signal

50.0 50.0
Williams %R rating

-50.0 -50.0
awesome oscillator

-0.07421 -0.036

RETURNS: That’s all for technical analysis. Now let’s just list the returns for State Auto Financial Corporation and Donegal Group, Inc..

Daily return -2.24333 5.41352
Daily log return -0.76162 0.06745
Cumulative return -0.75873 0.06748

So there you have it: our deep, grueling analysis comparing State Auto Financial Corporation and Donegal Group, Inc. together. But what does all of the above mean? Various technical indicators above are positive, while others are negative, and if we want to decide overall if the technical analysis indicates a bullish or bearish chart, we have to consider all of them together. That’s what the Trading View widget below can do, so let’s see what it says considering all these indicators. First, here’s State Auto Financial Corporation:

The verdict above will consider all these technical indicators and consider which are strong and weak, and then put them all together to come up with a conclusion stating whether STFC is strong or weak. Again – this is not a reliable indication of whether State Auto Financial Corporation is a good investment! None of these indicators consider the company fundamentals. All of this data is based on how it trades only. Now with that out of the way, let’s compare it with Donegal Group, Inc.

So there you have it. We hope you have found this analysis useful, and if you see any errors or have any feedback, please comment below.

How can you profit off trading these 2 companies and other stocks like it? First, check out the Beat The Market Analyzer software – this is worth its weight in gold. Some other great services for earning income from trading and investing are Dividend Stocks (an outstanding resource for anyone interested in high dividend paying stocks), Microcap Millionaires (the best site online for profiting off micro-cap stocks) and Trading Code (an extremely powerful system for profiting off trading).

DISCLAIMER: We are not registered investment advisers and the above analysis should be taken at face value only. We strongly advise against buying or selling anything based solely on our analysis above, and are not responsible for any losses that you may incur if you choose make any investment decisions based on the above.

Gary Ivenchuck

Gary is a stock trading expert and is responsible for covering technical analysis news on Logistics Business Review. Recently he has been working tirelessly to analyse stocks for our readers, and is always available to hear from people asking for stock analysis.
Gary Ivenchuck

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