Maiden (NASDAQ: MHLD) and Markel (NYSE:MKL) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.
Risk & Volatility
Maiden has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Markel has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.
66.1% of Maiden shares are held by institutional investors. Comparatively, 78.0% of Markel shares are held by institutional investors. 10.5% of Maiden shares are held by insiders. Comparatively, 2.5% of Markel shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current ratings and target prices for Maiden and Markel, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Maiden currently has a consensus price target of $10.40, indicating a potential upside of 33.33%. Markel has a consensus price target of $1,150.00, indicating a potential downside of 0.27%. Given Maiden’s higher possible upside, equities research analysts plainly believe Maiden is more favorable than Markel.
Maiden pays an annual dividend of $0.60 per share and has a dividend yield of 7.7%. Markel does not pay a dividend. Maiden pays out -27.8% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Maiden and Markel’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Maiden||$2.92 billion||0.22||-$169.89 million||($2.16)||-3.61|
|Markel||$6.06 billion||2.64||$395.26 million||$3.62||318.53|
Markel has higher revenue and earnings than Maiden. Maiden is trading at a lower price-to-earnings ratio than Markel, indicating that it is currently the more affordable of the two stocks.
This table compares Maiden and Markel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Markel beats Maiden on 11 of the 16 factors compared between the two stocks.
Maiden Holdings, Ltd., through its subsidiaries, provides reinsurance solutions to regional and specialty insurers in the United States, Europe, and internationally. It operates in two segments, Diversified Reinsurance and AmTrust Reinsurance. The Diversified Reinsurance segment offers property and casualty reinsurance, including the writing of treaties on a quota share or excess of loss basis; and facultative risks, which are marketed through third-party intermediaries and on a direct basis. The AmTrust Reinsurance segment provides small commercial business insurance, including workers' compensation, commercial package, and other property and casualty insurance products; and specialty risk and extended warranty coverage for consumer and commercial goods, as well as custom designed coverages, such as accidental damage plans and payment protection plans related to the sale of consumer and commercial goods. This segment also offers specialty program comprising package products, general liability, commercial auto liability, excess and surplus lines programs, and other specialty commercial property and casualty insurance to small and middle market companies. In addition, the company offers auto and credit life insurance products through its insurer partners to retail clients. Maiden Holdings, Ltd. was founded in 2007 and is headquartered in Pembroke, Bermuda.
Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, the United Kingdom, Canada, and internationally. It operates through three segments: U.S. Insurance, International Insurance, and Reinsurance. The U.S. Insurance segment offers general and professional liability, property, personal line, program, and workers' compensation insurance products, as well as other insurance product lines, such as ocean marine, surety, CPI, and coverages. The International Insurance segment provides professional and general liability, marine and energy, and property insurance products, as well as other insurance product lines, including crime, contingency, accident and health, specialty, short-term trade credit, and other coverages. The Reinsurance segment offers property and casualty treaty reinsurance products; and other treaty reinsurance products, including structured and whole turnover credit, political risk, mortgage, and contract and commercial surety, as well as public entity, aviation, whole account, accident and health coverage, offshore and onshore marine and energy risks, and agriculture. The company also operates as an insurance-linked securities investment fund manager and reinsurance manager; manufacturer of transportation and other industrial equipment; and a management and IT consulting firm providing services and solutions to various customers. Markel Corporation was founded in 1930 and is headquartered in Glen Allen, Virginia.
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