Marsh & McLennan Companies (MMC) & Brighthouse Financial (BHF) Critical Analysis
Marsh & McLennan Companies (NYSE: MMC) and Brighthouse Financial (NYSE:BHF) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
This is a breakdown of current ratings and target prices for Marsh & McLennan Companies and Brighthouse Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marsh & McLennan Companies||0||3||9||0||2.75|
Marsh & McLennan Companies currently has a consensus target price of $81.90, suggesting a potential downside of 0.06%. Brighthouse Financial has a consensus target price of $69.45, suggesting a potential upside of 27.35%. Given Brighthouse Financial’s higher probable upside, analysts plainly believe Brighthouse Financial is more favorable than Marsh & McLennan Companies.
Valuation & Earnings
This table compares Marsh & McLennan Companies and Brighthouse Financial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Marsh & McLennan Companies||$13.50 billion||3.11||$3.23 billion||$3.62||22.64|
Marsh & McLennan Companies has higher revenue and earnings than Brighthouse Financial.
Marsh & McLennan Companies pays an annual dividend of $1.50 per share and has a dividend yield of 1.8%. Brighthouse Financial does not pay a dividend. Marsh & McLennan Companies pays out 41.4% of its earnings in the form of a dividend. Marsh & McLennan Companies has raised its dividend for 7 consecutive years.
This table compares Marsh & McLennan Companies and Brighthouse Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marsh & McLennan Companies||13.97%||28.56%||10.18%|
Insider & Institutional Ownership
84.9% of Marsh & McLennan Companies shares are owned by institutional investors. 1.5% of Marsh & McLennan Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Marsh & McLennan Companies beats Brighthouse Financial on 10 of the 12 factors compared between the two stocks.
Marsh & McLennan Companies Company Profile
Marsh & McLennan Companies, Inc. is a professional services firm offering clients advice and solutions in risk, strategy and people. The Company is the parent company of various risk advisors and specialty consultants, including Marsh, the insurance broker; Guy Carpenter, the risk and reinsurance specialist; Mercer, the provider of human resource and investment related financial advice and services, and Oliver Wyman Group, the management and economic consultancy. It conducts business through two segments: Risk and Insurance Services, which includes risk management activities, as well as insurance and reinsurance broking and services, and Consulting includes health, retirement, talent and investments consulting services and products, and specialized management, economic and brand consulting services. It conducts business in the Risk and Insurance Services segment through Marsh and Guy Carpenter. It conducts business in the Consulting segment through Mercer and Oliver Wyman Group.
Brighthouse Financial Company Profile
Brighthouse Financial, Inc. is a provider of life insurance and annuity products in the United States. The Company offers a range of products and services, which include variable, fixed, index-linked and income annuities, as well as variable, universal, term and whole life products. These products and services are marketed through various third party retail distribution channels in the United States. Fixed income annuities provide a guaranteed monthly income for a specified period of years and/or for the life of the annuitant. The Company operating segments include Annuities, Life and Run-off.
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