Analyzing Markel Group (NYSE:MKL) and Allstate (NYSE:ALL)

Allstate (NYSE:ALL) and Markel Group (NYSE:MKL) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

76.5% of Allstate shares are held by institutional investors. Comparatively, 77.1% of Markel Group shares are held by institutional investors. 1.5% of Allstate shares are held by insiders. Comparatively, 1.1% of Markel Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Allstate and Markel Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allstate	$69.28 billion	0.93	$10.28 billion	$44.16	5.78
Markel Group	$15.51 billion	1.53	$2.11 billion	$140.76	13.78

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

Profitability

This table compares Allstate and Markel Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allstate	16.57%	38.37%	9.29%
Markel Group	10.44%	7.52%	1.99%

Analyst Ratings

This is a breakdown of current recommendations for Allstate and Markel Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allstate	3	10	7	2	2.36
Markel Group	1	5	0	0	1.83

Allstate currently has a consensus target price of $272.00, indicating a potential upside of 6.56%. Markel Group has a consensus target price of $2,025.00, indicating a potential upside of 4.44%. Given Allstate’s stronger consensus rating and higher probable upside, research analysts plainly believe Allstate is more favorable than Markel Group.

Volatility & Risk

Allstate has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500. Comparatively, Markel Group has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Summary

Allstate beats Markel Group on 10 of the 15 factors compared between the two stocks.

About Allstate

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. It operates in five segments: Allstate Protection; Protection Services; Allstate Health and Benefits; Run-off Property-Liability; and Corporate and Other segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; other personal lines products; and commercial lines products through agents, contact centers, and online. The Protection Services segment provides consumer product protection; protection and insurance products, including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel, and paintless dent repair protection; and roadside assistance, device and mobile data collection services, and analytic solutions using automotive telematics information, as well as identity theft protection and remediation services. This segment also offers its products under various brands, including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, Avail, and Allstate Identity Protection. The Allstate Health and Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products; stop-loss and fully insured group health products to employers; and short-term medical and medicare supplement insurance to individuals. The Run-off Property-Liability segment offers property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. The Corporate and Other segment provides debt services, as well as non-insurance operations. It sells its products through agents, independent agents, call and contact centers, retailers, direct to consumer, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.

About Markel Group

Markel Group Inc., a diverse holding company, engages in marketing and underwriting specialty insurance products in the United States, Bermuda, the United Kingdom, and Germany. The company offers general and professional liability, personal lines, marine and energy, specialty programs, and workers' compensation insurance products; and property coverages that include fire, allied lines, and other specialized property coverages, including catastrophe-exposed property risks, such as earthquake and wind. It also offers credit and surety products, and collateral protection insurance products. In addition, the company offers transaction, directors and officers, and healthcare liability reinsurance; and specialty treaty reinsurance products comprising credit and surety, workers' compensation, marine and energy, public entity, mortgage default, aviation and space, agriculture, and discrete political violence and national terror pools. Further, it provides construction services, consumer and building products, transportation-related products, consulting services, and equipment manufacturing products, as well as healthcare, leasing, and investment services. Additionally, the company operates as an insurance and investment fund manager offering a range of investment products, including insurance-linked securities, catastrophe bonds, insurance swaps, traditional reinsurance contracts, industry loss warranties and other financial instruments; and program services. It also manages funds with third parties. The company was formerly known as Markel Corporation and changed its name to Markel Group Inc. in May 2023. Markel Group Inc. was founded in 1930 and is based in Glen Allen, Virginia.