Great Elm Group (NASDAQ:GEG) and Markel Group (NYSE:MKL) Critical Survey

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

Institutional and Insider Ownership

77.1% of Markel Group shares are held by institutional investors. Comparatively, 52.8% of Great Elm Group shares are held by institutional investors. 1.1% of Markel Group shares are held by company insiders. Comparatively, 49.7% of Great Elm Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Markel Group and Great Elm Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Markel Group	$15.51 billion	1.62	$2.11 billion	$138.77	14.44
Great Elm Group	$16.32 million	4.19	$12.89 million	($0.82)	-2.66

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

Analyst Recommendations

This is a summary of current ratings and target prices for Markel Group and Great Elm Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Markel Group	1	5	0	0	1.83
Great Elm Group	1	0	0	0	1.00

Markel Group currently has a consensus target price of $2,025.00, suggesting a potential upside of 1.05%. Given Markel Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Markel Group is more favorable than Great Elm Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Markel Group	10.85%	7.90%	2.10%
Great Elm Group	-100.48%	-54.63%	-25.87%

Volatility & Risk

Markel Group has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Great Elm Group has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Summary

Markel Group beats Great Elm Group on 11 of the 13 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 Great Elm Group

Great Elm Group, Inc. operates as a asset management company. The company engages in credit, real estate, and finance businesses. It is also involved in business development related activities and offers investment management services. The company was formerly known as Great Elm Capital Group, Inc. and changed its name to Great Elm Group, Inc. in December 2020. Great Elm Group, Inc. was incorporated in 1994 and is headquartered in Waltham, Massachusetts.