Markel Group (NYSE:MKL – Get Free Report) and HCI Group (NYSE:HCI – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
Profitability
This table compares Markel Group and HCI Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Markel Group | 10.44% | 7.52% | 1.99% |
| HCI Group | 33.48% | 28.09% | 12.51% |
Insider & Institutional Ownership
77.1% of Markel Group shares are held by institutional investors. Comparatively, 87.0% of HCI Group shares are held by institutional investors. 1.1% of Markel Group shares are held by company insiders. Comparatively, 18.5% of HCI Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Markel Group and HCI Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Markel Group | $15.51 billion | 1.56 | $2.11 billion | $140.76 | 14.04 |
| HCI Group | $980.92 million | 2.38 | $299.01 million | $24.75 | 7.60 |
Markel Group has higher revenue and earnings than HCI Group. HCI Group is trading at a lower price-to-earnings ratio than Markel Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Markel Group has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, HCI Group has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Markel Group and HCI Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Markel Group | 1 | 5 | 0 | 0 | 1.83 |
| HCI Group | 0 | 1 | 5 | 1 | 3.00 |
Markel Group currently has a consensus price target of $2,025.00, indicating a potential upside of 2.44%. HCI Group has a consensus price target of $250.00, indicating a potential upside of 32.94%. Given HCI Group’s stronger consensus rating and higher possible upside, analysts clearly believe HCI Group is more favorable than Markel Group.
Summary
HCI Group beats Markel Group on 11 of the 15 factors compared between the two stocks.
About Markel Group
Markel Group Inc. is a diversified financial holding company best known for its specialty insurance and reinsurance operations. Through its insurance businesses, the company provides coverage for commercial and individual risks that may require specialized underwriting, serving customers in the United States and international markets. Founded in 1930 by Sam Markel, the company has expanded beyond insurance. Its Markel Ventures division owns and operates businesses across a range of industries, while its investment activities support the group’s broader operations.
About HCI Group
HCI Group, Inc. is a Florida-based holding company whose primary business is residential property and casualty insurance. Through its insurance subsidiaries, including Homeowners Choice Property & Casualty Insurance Company and TypTap Insurance Company, it offers coverage for homeowners and other residential property owners. The company’s insurance business is centered in Florida, and TypTap has supported its expansion into additional U.S. markets. HCI also has real estate operations and develops technology for use in the insurance industry.
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