MKL vs HCI

For growth investors, HCI Group, Inc.

(HCI) is the stronger pick with 20. 2% revenue growth year-over-year, versus -1. 0% for Markel Corporation (MKL). HCI Group, Inc. (HCI) offers the better valuation at 6. 2x trailing P/E (9. 3x forward), making it the more compelling value choice. Analysts rate HCI Group, Inc. (HCI) a "Buy" — based on 14 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, HCI Group, Inc.

(HCI) is the cheapest at 6. 2x versus Markel Corporation at 10. 4x. On forward P/E, HCI Group, Inc. is actually cheaper at 9. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: HCI Group, Inc. wins at 0. 19x versus Markel Corporation's 0. 63x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, HCI Group, Inc.

(HCI) delivered a total return of +111. 5%, compared to +48. 9% for Markel Corporation (MKL). Over 10 years, the gap is even starker: HCI returned +452. 3% versus MKL's +88. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), HCI Group, Inc.

(HCI) is the lower-risk stock at 0. 39β versus Markel Corporation's 0. 44β — meaning MKL is approximately 12% more volatile than HCI relative to the S&P 500. On balance sheet safety, HCI Group, Inc. (HCI) carries a lower debt/equity ratio of 3% versus 23% for Markel Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), HCI Group, Inc.

(HCI) is pulling ahead at 20. 2% versus -1. 0% for Markel Corporation (MKL). On earnings-per-share growth, the picture is similar: HCI Group, Inc. grew EPS 179. 8% year-over-year, compared to -15. 1% for Markel Corporation. Over a 3-year CAGR, HCI leads at 22. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

HCI Group, Inc.

(HCI) is the more profitable company, earning 35. 6% net margin versus 12. 7% for Markel Corporation — meaning it keeps 35. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HCI leads at 31. 6% versus 16. 5% for MKL. At the gross margin level — before operating expenses — MKL leads at 69. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, HCI Group, Inc. (HCI) is the more undervalued stock at a PEG of 0. 19x versus Markel Corporation's 0. 63x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, HCI Group, Inc. (HCI) trades at 9. 3x forward P/E versus 15. 7x for Markel Corporation — 6. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MKL: 10. 5% to $1950. 00.

In this comparison, MKL (2.

8% yield) pays a dividend. HCI does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Markel Corporation (MKL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

44), 2. 8% yield). Both have compounded well over 10 years (MKL: +88. 3%, HCI: +452. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: MKL is a mid-cap deep-value stock; HCI is a small-cap high-growth stock. MKL pays a dividend while HCI does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.