Analyzing Star Equity (NASDAQ:STRR) & Markel Group (NYSE:MKL)

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

Risk & Volatility

Markel Group has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Star Equity has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Markel Group	10.85%	7.90%	2.10%
Star Equity	-4.18%	-4.04%	-2.40%

Valuation and Earnings

This table compares Markel Group and Star Equity”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Markel Group	$15.51 billion	1.49	$2.11 billion	$138.77	13.30
Star Equity	$172.16 million	0.22	-$5.92 million	($2.63)	-3.87

Markel Group has higher revenue and earnings than Star Equity. Star Equity is trading at a lower price-to-earnings ratio than Markel Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

77.1% of Markel Group shares are owned by institutional investors. Comparatively, 3.8% of Star Equity shares are owned by institutional investors. 1.1% of Markel Group shares are owned by company insiders. Comparatively, 10.4% of Star Equity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Markel Group and Star Equity, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Markel Group	0	5	1	0	2.17
Star Equity	1	2	1	1	2.40

Markel Group currently has a consensus price target of $2,025.00, indicating a potential upside of 9.74%. Star Equity has a consensus price target of $28.00, indicating a potential upside of 175.29%. Given Star Equity’s stronger consensus rating and higher probable upside, analysts plainly believe Star Equity is more favorable than Markel Group.

Summary

Markel Group beats Star Equity on 10 of the 14 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 Star Equity

Star Equity Holdings, Inc. engages in the construction business in the United States and internationally. It operates through two segments: Construction, and Investments. It manufactures modular housing units, structural wall panels, permanent wood foundation systems, and other engineered wood products; supplies general contractors with building materials; holds real estate assets; and manages investments. The company was formerly known as Digirad Corporation and changed its name to Star Equity Holdings, Inc. in December 2020. Star Equity Holdings, Inc. was founded in 1985 and is headquartered in Old Greenwich, Connecticut.