Markel (NYSE: MKL) and Horace Mann Educators (NYSE:HMN) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
This table compares Markel and Horace Mann Educators’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Horace Mann Educators||14.46%||5.17%||0.66%|
Horace Mann Educators pays an annual dividend of $1.10 per share and has a dividend yield of 2.5%. Markel does not pay a dividend. Horace Mann Educators pays out 65.1% of its earnings in the form of a dividend. Markel has raised its dividend for 9 consecutive years.
Valuation & Earnings
This table compares Markel and Horace Mann Educators’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Markel||$6.06 billion||2.63||$395.26 million||$25.78||44.50|
|Horace Mann Educators||$1.17 billion||1.52||$169.45 million||$1.69||25.77|
Markel has higher revenue and earnings than Horace Mann Educators. Horace Mann Educators is trading at a lower price-to-earnings ratio than Markel, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
78.1% of Markel shares are owned by institutional investors. Comparatively, 98.3% of Horace Mann Educators shares are owned by institutional investors. 2.5% of Markel shares are owned by insiders. Comparatively, 2.4% of Horace Mann Educators shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings for Markel and Horace Mann Educators, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Horace Mann Educators||0||1||0||0||2.00|
Markel currently has a consensus target price of $1,150.00, indicating a potential upside of 0.25%. Horace Mann Educators has a consensus target price of $43.00, indicating a potential downside of 1.26%. Given Markel’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Markel is more favorable than Horace Mann Educators.
Volatility & Risk
Markel has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Horace Mann Educators has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Markel beats Horace Mann Educators on 11 of the 17 factors compared between the two stocks.
Markel Company Profile
Markel Corporation is a financial holding company serving a range of markets. The Company’s principal business markets and underwrites specialty insurance products. It monitors and reports its ongoing underwriting operations in three segments: U.S. Insurance, International Insurance and Reinsurance. The Company, through its subsidiary Markel Ventures, Inc. (Markel Ventures), owns interests in various industrial and service businesses that operate outside of the specialty insurance marketplace. The U.S. Insurance segment includes all direct business and facultative placements written by its insurance subsidiaries domiciled in the United States. The International Insurance segment includes all direct business and facultative placements written by its insurance subsidiaries domiciled outside of the United States, including its syndicate at Lloyd’s of London (Lloyd’s). The Reinsurance segment includes all treaty reinsurance written across the Company.
Horace Mann Educators Company Profile
Horace Mann Educators Corporation (HMEC) is an insurance holding company. Through its subsidiaries, HMEC markets and underwrites personal lines of property and casualty (primarily personal lines automobile and homeowners) insurance, retirement annuities (primarily tax-qualified products) and life insurance in the United States. The Company’s operating segments include Property and Casualty segment, comprising primarily personal lines automobile and homeowners products; Retirement segment, comprising primarily tax-qualified fixed and variable annuities; Life segment life insurance, and Corporate and Other. It markets and services its products through a sales force of full-time agents supported by its Customer Contact Center. These agents sell HMEC’s products and limited additional third-party vendor products. As of December 31, 2016, its property and casualty subsidiaries and its life insurance subsidiary were licensed to write business in over 48 states and the District of Columbia.
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