Financial Analysis: Markel Group (NYSE:MKL) vs. Fidelity National Financial (NYSE:FNF)

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

Earnings & Valuation

This table compares Markel Group and Fidelity National Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Markel Group	$16.17 billion	1.47	$2.11 billion	$140.76	13.83
Fidelity National Financial	$14.45 billion	0.82	$602.00 million	$3.92	11.26

Markel Group has higher revenue and earnings than Fidelity National Financial. Fidelity National Financial 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 Markel Group and Fidelity National Financial’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%
Fidelity National Financial	7.02%	15.98%	1.20%

Risk and Volatility

Markel Group has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Fidelity National Financial has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Insider and Institutional Ownership

77.1% of Markel Group shares are owned by institutional investors. Comparatively, 81.2% of Fidelity National Financial shares are owned by institutional investors. 1.1% of Markel Group shares are owned by insiders. Comparatively, 5.7% of Fidelity National Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Markel Group and Fidelity National Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Markel Group	1	5	0	0	1.83
Fidelity National Financial	1	2	3	0	2.33

Markel Group currently has a consensus target price of $2,025.00, indicating a potential upside of 3.99%. Fidelity National Financial has a consensus target price of $54.60, indicating a potential upside of 23.75%. Given Fidelity National Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Fidelity National Financial is more favorable than Markel Group.

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.

About Fidelity National Financial

Fidelity National Financial, Inc., together with its subsidiaries, provides various insurance products in the United States. The company operates through Title, F&G, and Corporate and Other segments. It offers title insurance, escrow, and other title related services, including trust activities, trustee sales guarantees, recordings and reconveyances, and home warranty products. The company also provides technology and transaction services to the real estate and mortgage industries; and mortgage transaction services, including title-related services and facilitation of production and management of mortgage loans. In addition, it offers annuity and life insurance products, such as deferred and immediate annuities, as well as indexed universal life insurance products; and funding agreements and pension risk transfer (PRT) solutions. Further, the company engages in the real estate brokerage business. Fidelity National Financial, Inc. was incorporated in 2005 and is headquartered in Jacksonville, Florida.