Reviewing Patriot National (PN) and Marsh & McLennan Companies (MMC)
Patriot National (NYSE: PN) and Marsh & McLennan Companies (NYSE:MMC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.
This table compares Patriot National and Marsh & McLennan Companies’ 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%|
Volatility and Risk
Patriot National has a beta of 2.8, indicating that its share price is 180% more volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
Marsh & McLennan Companies pays an annual dividend of $1.50 per share and has a dividend yield of 1.9%. Patriot National does not pay a dividend. Marsh & McLennan Companies pays out 41.4% of its earnings in the form of a dividend. Patriot National has increased its dividend for 7 consecutive years.
Valuation and Earnings
This table compares Patriot National and Marsh & McLennan Companies’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Patriot National||$233.03 million||0.16||$31.71 million||($0.02)||-58.00|
|Marsh & McLennan Companies||$13.50 billion||3.08||$3.23 billion||$3.62||22.38|
Marsh & McLennan Companies has higher revenue and earnings than Patriot National. Patriot National is trading at a lower price-to-earnings ratio than Marsh & McLennan Companies, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
13.3% of Patriot National shares are owned by institutional investors. Comparatively, 84.9% of Marsh & McLennan Companies shares are owned by institutional investors. 59.9% of Patriot National shares are owned by insiders. Comparatively, 1.5% of Marsh & McLennan Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of current recommendations for Patriot National and Marsh & McLennan Companies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marsh & McLennan Companies||0||3||9||0||2.75|
Patriot National currently has a consensus price target of $7.75, indicating a potential upside of 568.10%. Marsh & McLennan Companies has a consensus price target of $81.90, indicating a potential upside of 1.09%. Given Patriot National’s higher possible upside, research analysts plainly believe Patriot National is more favorable than Marsh & McLennan Companies.
Marsh & McLennan Companies beats Patriot National on 11 of the 16 factors compared between the two stocks.
Patriot National Company Profile
Patriot National, Inc. is an independent national provider of technology-enabled outsourcing solutions that help insurance carriers, employers and other clients mitigate risk and comply with complex regulations. It offers a range of end-to-end insurance related and specialty services. The Company principally offers approximately two types of services: front-end services, such as brokerage, underwriting and policyholder services, and back-end services, such as claims adjudication and administration. It also offers specialty services, including technology outsourcing and other information technology (IT) services, as well as employment pre-screening and background checks. The Company’s brokerage and policyholder services include general agency services and specialty underwriting and policyholder services provided to its insurance carrier clients. The Company’s claims administration services relate to the administration and resolution of workers’ compensation claims.
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.
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