Horace Mann Educators (NYSE: HMN) and Markel (NYSE:MKL) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Risk & Volatility
Horace Mann Educators has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Markel has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.
Horace Mann Educators pays an annual dividend of $1.14 per share and has a dividend yield of 2.6%. Markel does not pay a dividend. Horace Mann Educators pays out 65.5% of its earnings in the form of a dividend. Horace Mann Educators has increased its dividend for 9 consecutive years.
This is a breakdown of current recommendations and price targets for Horace Mann Educators and Markel, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Horace Mann Educators||0||1||0||0||2.00|
Horace Mann Educators presently has a consensus target price of $43.00, suggesting a potential downside of 1.94%. Markel has a consensus target price of $1,150.00, suggesting a potential downside of 0.97%. Given Markel’s stronger consensus rating and higher probable upside, analysts clearly believe Markel is more favorable than Horace Mann Educators.
Earnings & Valuation
This table compares Horace Mann Educators and Markel’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Horace Mann Educators||$1.17 billion||1.53||$169.45 million||$1.74||25.20|
|Markel||$6.06 billion||2.66||$395.26 million||$3.62||320.78|
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.
This table compares Horace Mann Educators and Markel’s 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%|
Insider and Institutional Ownership
98.3% of Horace Mann Educators shares are held by institutional investors. Comparatively, 78.2% of Markel shares are held by institutional investors. 2.1% of Horace Mann Educators shares are held by insiders. Comparatively, 2.5% of Markel shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Markel beats Horace Mann Educators on 10 of the 17 factors compared between the two stocks.
About Horace Mann Educators
Horace Mann Educators Corporation, through its subsidiaries, operates as a multiline insurance company in the United States. The Company operates Property and Casualty Insurance, Annuity Products, and Life Insurance segments. It underwrites and markets personal lines of property and casualty insurance, including personal lines automobile and property insurance products; retirement products, such as tax-qualified annuities; and life insurance products. The company markets its products through its sales force of full-time exclusive distributors and independent agents to K-12 teachers, administrators, and other employees of public schools and their families. Horace Mann Educators Corporation was founded in 1945 and is headquartered in Springfield, Illinois.
Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, the United Kingdom, Canada, and internationally. It operates through three segments: U.S. Insurance, International Insurance, and Reinsurance. The U.S. Insurance segment offers general and professional liability, property, personal line, program, and workers' compensation insurance products, as well as other insurance product lines, such as ocean marine, surety, CPI, and coverages. The International Insurance segment provides professional and general liability, marine and energy, and property insurance products, as well as other insurance product lines, including crime, contingency, accident and health, specialty, short-term trade credit, and other coverages. The Reinsurance segment offers property and casualty treaty reinsurance products; and other treaty reinsurance products, including structured and whole turnover credit, political risk, mortgage, and contract and commercial surety, as well as public entity, aviation, whole account, accident and health coverage, offshore and onshore marine and energy risks, and agriculture. The company also operates as an insurance-linked securities investment fund manager and reinsurance manager; manufacturer of transportation and other industrial equipment; and a management and IT consulting firm providing services and solutions to various customers. Markel Corporation was founded in 1930 and is headquartered in Glen Allen, Virginia.
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