Critical Analysis: Markel Group (NYSE:MKL) and GAINSCO (OTCMKTS:GANS)

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

Valuation and Earnings

This table compares Markel Group and GAINSCO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Markel Group	$15.56 billion	1.53	$2.64 billion	$135.69	13.85
GAINSCO	N/A	N/A	N/A	N/A	N/A

Markel Group has higher revenue and earnings than GAINSCO.

Analyst Recommendations

This is a breakdown of recent ratings for Markel Group and GAINSCO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Markel Group	1	3	0	0	1.75
GAINSCO	0	0	0	0	0.00

Markel Group currently has a consensus price target of $1,727.75, indicating a potential downside of 8.06%. Given GAINSCO’s higher possible upside, analysts clearly believe GAINSCO is more favorable than Markel Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Markel Group	16.34%	7.55%	1.99%
GAINSCO	N/A	N/A	N/A

Insider & Institutional Ownership

77.1% of Markel Group shares are owned by institutional investors. 1.7% of Markel Group shares are owned by company insiders. Comparatively, 73.5% of GAINSCO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Markel Group beats GAINSCO on 6 of the 8 factors compared between the two stocks.

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.

About GAINSCO

GAINSCO, Inc. operates as a property and casualty insurance holding company. The company offers non-standard personal auto products, including coverage for third party liability, bodily injury, and physical damage, as well as collision and coverage for theft, physical damage, and other perils for an insured's vehicle. It is also involved in automotive sales and service, auto racing, and investment activities. The company offers its automobile insurance products under the GAINSCO Auto Insurance brand through independent partner agents and Website comparison shopping places. GAINSCO, Inc. was founded in 1978 and is based in Dallas, Texas.