Markel (NASDAQ: IPCC) and Infinity Property and Casualty (NASDAQ:IPCC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Volatility and Risk

Markel has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Infinity Property and Casualty has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Dividends

Infinity Property and Casualty pays an annual dividend of $2.32 per share and has a dividend yield of 1.6%. Markel does not pay a dividend. Infinity Property and Casualty pays out 47.4% of its earnings in the form of a dividend. Infinity Property and Casualty has raised its dividend for 10 consecutive years.

Profitability

This table compares Markel and Infinity Property and Casualty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Markel 5.79% 2.89% 0.84%
Infinity Property and Casualty 3.58% 9.22% 2.65%

Valuation and Earnings

This table compares Markel and Infinity Property and Casualty’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Markel $6.06 billion 2.76 $395.26 million $3.62 332.43
Infinity Property and Casualty $1.52 billion 1.03 $45.38 million $4.89 29.20

Markel has higher revenue and earnings than Infinity Property and Casualty. Infinity Property and Casualty 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

76.6% of Markel shares are owned by institutional investors. Comparatively, 91.2% of Infinity Property and Casualty shares are owned by institutional investors. 2.5% of Markel shares are owned by company insiders. Comparatively, 3.2% of Infinity Property and Casualty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Markel and Infinity Property and Casualty, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Markel 0 3 2 0 2.40
Infinity Property and Casualty 0 1 0 0 2.00

Markel presently has a consensus target price of $1,216.67, suggesting a potential upside of 1.10%. Infinity Property and Casualty has a consensus target price of $121.00, suggesting a potential downside of 15.27%. Given Markel’s stronger consensus rating and higher probable upside, equities analysts plainly believe Markel is more favorable than Infinity Property and Casualty.

Summary

Markel beats Infinity Property and Casualty on 10 of the 17 factors compared between the two stocks.

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. 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, as well as offers capital solutions to asset and wealth management firms. Markel Corporation was founded in 1930 and is headquartered in Glen Allen, Virginia.

Infinity Property and Casualty Company Profile

Infinity Property and Casualty Corporation, through its subsidiaries, provides personal auto insurance products in the United States. The company offers nonstandard, commercial, and classic collector auto insurance products. It also provides reinsurance products and services. The company distributes its products primarily through a network of independent agencies and brokers. Infinity Property and Casualty Corporation was founded in 2002 and is headquartered in Birmingham, Alabama.

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