Markel Group Inc. (MKL) vs W.R. Berkley Corporation (WRB)

Markel Group Inc. and W.R. Berkley Corporation are both Insurance Property & Casualty companies. W.R. Berkley Corporation is the larger, with a market value of $27.5B against $22.6B — 1.2× the size. Markel Group Inc. trades at the lower P/E: 10.1× against 15.3×. W.R. Berkley Corporation grew revenue faster over the last twelve months: 4.27% against 0.86%. Markel Group Inc. has the higher net margin (13.8% vs 12.9%) and the lower return on invested capital (10.0% vs 15.7%). Across the 20 metrics below, Markel Group Inc. leads on 10 and W.R. Berkley Corporation on 10.

Valuation

Metric MKL WRB Insurance Property & Casualty median
P/E 10.13 15.34 10.75
P/S 1.40 1.96 1.21
P/B 1.22 2.97 1.99
Price to free cash flow 10.96 8.55 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.87% 6.52% 9.08%
Free cash flow yield 9.12% 11.70% 12.11%

Profitability

Metric MKL WRB Insurance Property & Casualty median
Gross margin 51.93% 47.56% 41.16%
Operating margin 18.63% 17.04% 15.09%
Net margin 13.77% 12.94% 11.51%
Free cash flow margin 12.76% 22.92% 17.46%
Return on equity 12.57% 20.14% 17.34%
Return on assets 3.31% 4.37% 3.74%
Return on invested capital 10.01% 15.74% 12.06%

Growth

Metric MKL WRB Insurance Property & Casualty median
Revenue growth (TTM) 0.86% 4.27% 8.02%
EPS growth (last fiscal year) (15.10%) 2.06% 39.61%
Revenue growth, 5-year CAGR 11.25% 12.67% 9.23%
Net income growth, 5-year CAGR 21.14% 27.38% 10.09%

Health

Metric MKL WRB Insurance Property & Casualty median
Debt to equity 0.23 0.29 0.25
Current ratio 0.57 0.32 0.42
Net debt to EBITDA (0.09) 0.13 0.08

Dividend

Metric MKL WRB Insurance Property & Casualty median
Dividend yield — 0.25% 1.50%
Payout ratio — 0.04 0.14

Size

Metric MKL WRB Insurance Property & Casualty median
Market cap 22.61b 27.46b 2.67b

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