Comparing Markel Group (NYSE:MKL) and Scully Royalty (NYSE:SRL)

Scully Royalty (NYSE:SRL) and Markel Group (NYSE:MKL) are both multi-sector conglomerates companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Valuation & Earnings

This table compares Scully Royalty and Markel Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scully Royalty	$25.77 million	4.68	-$15.02 million	N/A	N/A
Markel Group	$16.62 billion	1.56	$2.75 billion	$159.74	12.87

Markel Group has higher revenue and earnings than Scully Royalty.

Volatility and Risk

Scully Royalty has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Markel Group has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Scully Royalty and Markel Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scully Royalty	1	0	0	0	1.00
Markel Group	0	2	2	1	2.80

Markel Group has a consensus target price of $2,025.00, suggesting a potential downside of 1.53%. Given Markel Group’s stronger consensus rating and higher possible upside, analysts plainly believe Markel Group is more favorable than Scully Royalty.

Institutional & Insider Ownership

42.0% of Scully Royalty shares are held by institutional investors. Comparatively, 77.1% of Markel Group shares are held by institutional investors. 1.9% of Scully Royalty shares are held by company insiders. Comparatively, 1.7% of Markel Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Scully Royalty	N/A	N/A	N/A
Markel Group	12.99%	7.76%	2.03%

Summary

Markel Group beats Scully Royalty on 11 of the 13 factors compared between the two stocks.

About Scully Royalty

Scully Royalty Ltd. operates as an iron ore mining company in the Americas, Africa, Canada, Asia, and Europe. It operates through three segments: Royalty, Industrial, and Merchant Banking. The company holds royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. It also engages in manufacturing, and medical supplies and services industries. In addition, the company offers merchant banking and financial services to small and medium sized enterprises; operates projects in resources and services; and holds two industrial real estate parks. Scully Royalty Ltd. was formerly known as MFC Bancorp Ltd. and changed its name to Scully Royalty Ltd. in June 2019. The company was incorporated in 2017 and is based in Shanghai, the People's Republic of China.

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.