Financial Contrast: Manulife Financial (NYSE:MFC) and Markel Group (NYSE:MKL)

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

Risk and Volatility

Manulife Financial has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Markel Group has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Earnings and Valuation

This table compares Manulife Financial and Markel Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manulife Financial	$43.63 billion	1.68	$4.14 billion	$2.68	16.45
Markel Group	$16.67 billion	1.38	$2.11 billion	$181.86	10.21

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Manulife Financial and Markel Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manulife Financial	0	1	4	2	3.14
Markel Group	1	3	1	0	2.00

Manulife Financial presently has a consensus price target of $58.75, suggesting a potential upside of 33.23%. Markel Group has a consensus price target of $2,025.00, suggesting a potential upside of 9.04%. Given Manulife Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Manulife Financial is more favorable than Markel Group.

Institutional & Insider Ownership

52.6% of Manulife Financial shares are owned by institutional investors. Comparatively, 77.1% of Markel Group shares are owned by institutional investors. 0.0% of Manulife Financial shares are owned by company insiders. Comparatively, 1.1% of Markel Group shares are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Manulife Financial	9.99%	16.68%	0.75%
Markel Group	13.53%	7.16%	1.91%

Summary

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

About Manulife Financial

Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in the United States, Canada, Asia, and internationally. The company operates through Wealth and Asset Management Businesses; Insurance and Annuity Products; and Corporate and Other segments. The Wealth and Asset Management Businesses segment offers investment advice and solutions to retirement, retail, and institutional clients through multiple distribution channels, including agents and brokers affiliated with the company, independent securities brokerage firms and financial advisors pension plan consultants, and banks. The Insurance and Annuity Products segment provides deposit and credit products; and individual life insurance, individual and group long-term care insurance, and guaranteed and partially guaranteed annuity products through multiple distribution channels, including insurance agents, brokers, banks, financial planners, and direct marketing. The Corporate and Other segment is involved in the property and casualty reinsurance businesses; and run-off reinsurance operations, including variable annuities, and accident and health. The company also manages timberland and agricultural portfolios; and engages in insurance agency, investment counseling and dealer, portfolio and mutual fund management, property and casualty insurance, and mutual fund dealer businesses. In addition, it provides integrated banking products and services. The company was incorporated in 1887 and is headquartered in Toronto, Canada.

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.