Critical Comparison: Markel Group (NYSE:MKL) vs. Icahn Enterprises (NASDAQ:IEP)

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

Volatility & Risk

Icahn Enterprises has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Markel Group has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Icahn Enterprises and Markel Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Icahn Enterprises	1	1	0	0	1.50
Markel Group	0	2	2	1	2.80

Markel Group has a consensus price target of $2,025.00, indicating a potential downside of 1.53%. Given Markel Group’s stronger consensus rating and higher possible upside, analysts plainly believe Markel Group is more favorable than Icahn Enterprises.

Earnings & Valuation

This table compares Icahn Enterprises and Markel Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Icahn Enterprises	$10.02 billion	0.47	-$445.00 million	($0.79)	-9.89
Markel Group	$16.62 billion	1.56	$2.75 billion	$159.74	12.87

Markel Group has higher revenue and earnings than Icahn Enterprises. Icahn Enterprises 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 Icahn Enterprises and Markel Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Icahn Enterprises	-4.04%	-10.13%	-2.51%
Markel Group	12.99%	7.76%	2.03%

Institutional & Insider Ownership

87.1% of Icahn Enterprises shares are owned by institutional investors. Comparatively, 77.1% of Markel Group shares are owned by institutional investors. 90.1% of Icahn Enterprises shares are owned by insiders. Comparatively, 1.7% of Markel Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Markel Group beats Icahn Enterprises on 12 of the 15 factors compared between the two stocks.

About Icahn Enterprises

Icahn Enterprises L.P., through its subsidiaries, engages in the investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. The Investment segment invests its proprietary capital through various private investment funds. This segment provides investment advisory and other related services. The Energy segment refines and markets transportation fuels in the form of gasoline and diesel fuels, as well as renewable diesel; and manufactures nitrogen fertilizers in the form of urea ammonium nitrate and ammonia. The Automotive segment sells automotive parts and materials, and retailed merchandise; offers automotive repair and maintenance services; and leases real estate properties. The Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings that are used to prepare and package processed meat products. The Real Estate segment is involved in the leasing of land, retail, office, and industrial properties; the development and sale of single-family homes; and the operation of country clubs. The Home Fashion segment manufactures, sources, markets, distributes, and sells home fashion consumer products. The Pharma segment offers pharmaceutical products and services. The company was incorporated in 1987 and is headquartered in Sunny Isles Beach, Florida.

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.