Loews Corporation (L) vs Markel Group Inc. (MKL)

Loews Corporation and Markel Group Inc. are both Insurance Property & Casualty companies. Loews Corporation and Markel Group Inc. are of similar size ($21.5B and $21.5B). Markel Group Inc. trades at the lower P/E: 9.5× against 12.8×. Loews Corporation grew revenue faster over the last twelve months: 3.50% against 0.86%. Markel Group Inc. has the higher net margin (13.8% vs 9.02%) and the higher return on invested capital (10.0% vs 6.03%). Across the 22 metrics below, Markel Group Inc. leads on 17 and Loews Corporation on 5.

Valuation

Metric L MKL Insurance Property & Casualty median
P/E 12.85 9.46 10.29
P/S 1.15 1.31 1.17
P/B 1.08 1.14 1.83
Price to free cash flow 12.20 10.23 7.48
EV/EBITDA 10.91 7.11 7.49
EV/Sales 1.60 1.32 1.13
Earnings yield 7.78% 10.57% 9.50%
Free cash flow yield 8.20% 9.77% 13.29%

Profitability

Metric L MKL Insurance Property & Casualty median
Gross margin 54.39% 51.93% 41.16%
Operating margin 14.69% 18.63% 15.09%
Net margin 9.02% 13.77% 11.51%
Free cash flow margin 9.45% 12.76% 17.59%
Return on equity 8.78% 12.57% 18.19%
Return on assets 1.96% 3.31% 3.74%
Return on invested capital 6.03% 10.01% 12.06%

Growth

Metric L MKL Insurance Property & Casualty median
Revenue growth (TTM) 3.50% 0.86% 8.69%
EPS growth (last fiscal year) 24.34% (15.10%) —
Revenue growth, 5-year CAGR 7.96% 11.25% 9.23%
Net income growth, 5-year CAGR 0.00% 21.14% 10.09%

Health

Metric L MKL Insurance Property & Casualty median
Debt to equity 0.45 0.23 0.25
Current ratio 0.25 0.57 0.42
Net debt to EBITDA 2.88 (0.09) 0.08

Dividend

Metric L MKL Insurance Property & Casualty median
Dividend yield 0.35% — 2.79%
Payout ratio 0.05 0.00 0.27

Size

Metric L MKL Insurance Property & Casualty median
Market cap 21.48b 21.50b 2.44b

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