Trupanion (NASDAQ:TRUP) and Markel (NYSE:MKL) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Profitability
This table compares Trupanion and Markel's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Trupanion | -0.37% | -1.22% | -0.60% |
Markel | 5.29% | 2.41% | 0.68% |
Institutional & Insider Ownership
89.4% of Trupanion shares are owned by institutional investors. Comparatively, 74.6% of Markel shares are owned by institutional investors. 13.6% of Trupanion shares are owned by insiders. Comparatively, 2.2% of Markel shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Trupanion and Markel, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Trupanion | 0 | 3 | 3 | 0 | 2.50 |
Markel | 0 | 2 | 2 | 0 | 2.50 |
Trupanion currently has a consensus price target of $86.60, suggesting a potential downside of 10.50%. Markel has a consensus price target of $1,143.75, suggesting a potential upside of 5.05%. Given Markel's higher possible upside, analysts plainly believe Markel is more favorable than Trupanion.
Volatility & Risk
Trupanion has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500. Comparatively, Markel has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.
Valuation and Earnings
This table compares Trupanion and Markel's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Trupanion | $383.94 million | 9.95 | $-1,810,000.00 | ($0.05) | -1,935.20 |
Markel | $9.53 billion | 1.58 | $1.79 billion | $38.91 | 27.98 |
Markel has higher revenue and earnings than Trupanion. Trupanion is trading at a lower price-to-earnings ratio than Markel, indicating that it is currently the more affordable of the two stocks.
Summary
Markel beats Trupanion on 8 of the 13 factors compared between the two stocks.