Brighthouse Financial (NYSE: BHF) and Marsh & McLennan Companies (NYSE:MMC) are both financials companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Earnings and Valuation

This table compares Brighthouse Financial and Marsh & McLennan Companies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brighthouse Financial N/A N/A N/A N/A N/A
Marsh & McLennan Companies $13.50 billion 3.18 $3.23 billion $3.62 23.12

Marsh & McLennan Companies has higher revenue and earnings than Brighthouse Financial.

Dividends

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 increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of recent ratings for Brighthouse Financial and Marsh & McLennan Companies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brighthouse Financial 1 11 1 0 2.00
Marsh & McLennan Companies 0 4 8 0 2.67

Brighthouse Financial presently has a consensus target price of $69.45, indicating a potential upside of 14.67%. Marsh & McLennan Companies has a consensus target price of $82.50, indicating a potential downside of 1.43%. Given Brighthouse Financial’s higher possible upside, equities analysts plainly believe Brighthouse Financial is more favorable than Marsh & McLennan Companies.

Profitability

This table compares Brighthouse Financial and Marsh & McLennan Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brighthouse Financial 12.14% 6.26% 0.44%
Marsh & McLennan Companies 13.97% 28.56% 10.18%

Institutional and Insider Ownership

84.8% of Marsh & McLennan Companies shares are owned by institutional investors. 1.5% of Marsh & McLennan Companies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Marsh & McLennan Companies beats Brighthouse Financial on 10 of the 12 factors compared between the two stocks.

About Brighthouse Financial

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.

About Marsh & McLennan Companies

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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