Head to Head Comparison: Markel Group (NYSE:MKL) vs. Star Equity (NASDAQ:STRR)

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

Risk & Volatility

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

Profitability

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

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

Insider and Institutional Ownership

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

Analyst Ratings

This is a breakdown of recent recommendations for Star Equity and Markel Group, as reported by MarketBeat.

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

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

Earnings & Valuation

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

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

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.

Summary

Markel Group beats Star Equity on 10 of the 14 factors compared between the two stocks.

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.

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.