Analyzing IAC (NASDAQ:IAC) & Markel Group (NYSE:MKL)

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

Profitability

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

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

Analyst Ratings

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

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

IAC currently has a consensus target price of $47.92, indicating a potential upside of 49.06%. Markel Group has a consensus target price of $1,930.50, indicating a potential upside of 0.50%. Given IAC’s stronger consensus rating and higher probable upside, equities research analysts clearly believe IAC is more favorable than Markel Group.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IAC	$3.81 billion	0.63	-$539.90 million	($5.39)	-5.96
Markel Group	$16.62 billion	1.46	$2.75 billion	$166.74	11.52

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.

Risk and Volatility

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

Institutional & Insider Ownership

88.9% of IAC shares are owned by institutional investors. Comparatively, 77.1% of Markel Group shares are owned by institutional investors. 16.1% of IAC shares are owned by company insiders. Comparatively, 1.7% of Markel Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

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

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.

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.