Analyzing Griffon (NYSE:GFF) and Markel Group (NYSE:MKL)

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

Risk and Volatility

Markel Group has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Griffon has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Insider & Institutional Ownership

77.1% of Markel Group shares are owned by institutional investors. Comparatively, 73.2% of Griffon shares are owned by institutional investors. 1.1% of Markel Group shares are owned by company insiders. Comparatively, 10.2% of Griffon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Markel Group and Griffon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Markel Group	0	5	1	0	2.17
Griffon	0	2	2	1	2.80

Markel Group currently has a consensus price target of $2,025.00, indicating a potential upside of 11.13%. Griffon has a consensus price target of $115.00, indicating a potential upside of 38.62%. Given Griffon’s stronger consensus rating and higher possible upside, analysts clearly believe Griffon is more favorable than Markel Group.

Profitability

This table compares Markel Group and Griffon’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%
Griffon	0.31%	298.42%	12.31%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Markel Group	$15.51 billion	1.47	$2.11 billion	$138.77	13.13
Griffon	$2.52 billion	1.51	$51.11 million	$0.13	638.18

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

Summary

Griffon beats Markel Group on 10 of the 15 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 Griffon

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications. The segment also sells related products, such as garage door openers. The Consumer and Professional Products segment manufactures and markets long-handled engineered tools, including spades, hoes, cultivators, weeders, post hole diggers, scrapers, edgers and forks; wheelbarrows and lawn carts; snow tools comprising pushers, roof rakes, sled sleigh shovels, scoops, and ice scrapers; and pruning products, such as pruners, loppers, shears, and other tools. The segment also offers striking tools, including axes, picks, mattocks, mauls, wood splitters, sledgehammers, pry bars, and repair handles; traditional and gardening hand tools comprising hammers, screwdrivers, pliers, adjustable wrenches, handsaws, tape measures, levels, clamps, trowels, cultivators, weeders, and other hand tools; indoor and outdoor planters and lawn accessories; and garden hoses and hose reels. In addition, the segment provides home organization products, including wire and wood shelving, containers, storage cabinets, and other closet and home organization accessories; residential, industrial, and commercial fans; and cleaning products, such as brooms, brushes, squeegees, and other cleaning products. The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992. Griffon Corporation was founded in 1774 and is headquartered in New York, New York.