Contrasting Markel (NYSE:MKL) and NI (NYSE:NODK)

NI (NASDAQ:NODK) and Markel (NYSE:MKL) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
NI 9.42% 7.98% 4.61%
Markel 6.75% 5.18% 1.46%

Analyst Ratings

This is a summary of recent recommendations and price targets for NI and Markel, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NI 0 0 0 0 N/A
Markel 0 2 2 0 2.50

Markel has a consensus target price of $1,141.67, suggesting a potential upside of 0.88%. Given Markel’s higher possible upside, analysts clearly believe Markel is more favorable than NI.

Earnings & Valuation

This table compares NI and Markel’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NI $212.37 million 1.72 $31.08 million N/A N/A
Markel $6.84 billion 2.28 -$128.18 million $20.53 55.12

NI has higher earnings, but lower revenue than Markel.

Institutional & Insider Ownership

21.7% of NI shares are owned by institutional investors. Comparatively, 75.2% of Markel shares are owned by institutional investors. 0.5% of NI shares are owned by company insiders. Comparatively, 2.3% of Markel shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

NI has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500. Comparatively, Markel has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Summary

Markel beats NI on 8 of the 12 factors compared between the two stocks.

NI Company Profile

NI Holdings, Inc. underwrites property and casualty insurance products in North Dakota, South Dakota, Nebraska, Minnesota, Nevada, Arizona, and Illinois. Its products include multi-peril crop, crop hail, private passenger automobile, farm owners, homeowners, and commercial property and liability insurance policies, as well as non-standard automobile insurance products. The company distributes its insurance products through independent producers and independent agents. The company was founded in 1946 and is headquartered in Fargo, North Dakota. NI Holdings, Inc. is a subsidiary of Nodak Mutual Group, Inc.

Markel Company Profile

Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, the United Kingdom, Canada, and internationally. Its Insurance segment offers general and professional liability, property, personal lines, marine and energy, specialty programs, and workers' compensation insurance products. This segment also offers contract, commercial, and court bonds; coverage on automobiles or other vehicles held as collateral for loans; coverages for horse mortality, theft, infertility, transit, and specified perils; crime coverage; property and liability package coverage to small and medium sized businesses; accident and health coverage; coverage for legal expenses; and short-term trade credit coverage for commercial risks. The company's Reinsurance segment offers general liability, professional liability, workers' compensation, medical malpractice, environmental impairment liability, and auto liability; property treaty products for catastrophe, per risk, and retrocessional exposures; and specialty treaty reinsurance products comprising structured and whole turnover credit, political risk, mortgage and contract, and commercial surety reinsurance programs. Its Markel Ventures segment provides equipment used in baking systems and food processing; portable dredges; over-the-road car haulers and equipment; laminated oak and composite wood flooring; storage and transportation equipment for specialty gas; dormitory furniture, wall systems, medical casework, and marine panels; ornamental plants; fashion handbags; residential homes; and behavioral healthcare, concierge health programs, retail intelligence, and management and technology consulting services, as well as leases and manages manufactured housing communities. The company's Other segment operates as an insurance-linked securities investment fund manager. Markel Corporation was founded in 1930 and is headquartered in Glen Allen, Virginia.

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