Critical Comparison: IAC (NASDAQ:IAC) versus Markel Group (NYSE:MKL)

Markel Group (NYSE:MKL) and IAC (NASDAQ:IAC) are both multi-sector conglomerates companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Risk and Volatility

Markel Group has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, IAC has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Markel Group	13.39%	7.18%	1.88%
IAC	-14.52%	-8.23%	-5.44%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Markel Group and IAC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Markel Group	0	3	2	0	2.40
IAC	1	2	12	0	2.73

Markel Group currently has a consensus price target of $1,930.50, suggesting a potential downside of 1.24%. IAC has a consensus price target of $47.92, suggesting a potential upside of 43.78%. Given IAC’s stronger consensus rating and higher possible upside, analysts plainly believe IAC is more favorable than Markel Group.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Markel Group	$16.26 billion	1.52	$2.75 billion	$166.74	11.72
IAC	$3.81 billion	0.65	-$539.90 million	($5.39)	-6.18

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

Institutional & Insider Ownership

77.1% of Markel Group shares are held by institutional investors. Comparatively, 88.9% of IAC shares are held by institutional investors. 1.7% of Markel Group shares are held by insiders. Comparatively, 16.1% of IAC shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Markel Group beats IAC on 8 of the 14 factors compared between the two stocks.

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 IAC

IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC/InterActiveCorp. The company is headquartered in New York, New York.