Marsh & McLennan Companies (NYSE: MMC) is one of 24 public companies in the “Multiline Insurance & Brokers” industry, but how does it compare to its rivals? We will compare Marsh & McLennan Companies to related businesses based on the strength of its dividends, risk, valuation, institutional ownership, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Marsh & McLennan Companies and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marsh & McLennan Companies 0 4 6 0 2.60
Marsh & McLennan Companies Competitors 112 796 844 21 2.44

Marsh & McLennan Companies presently has a consensus target price of $84.60, indicating a potential upside of 1.93%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 3.10%. Given Marsh & McLennan Companies’ stronger consensus rating and higher possible upside, research analysts plainly believe Marsh & McLennan Companies is more favorable than its rivals.

Dividends

Marsh & McLennan Companies pays an annual dividend of $1.50 per share and has a dividend yield of 1.8%. Marsh & McLennan Companies pays out 41.1% of its earnings in the form of a dividend. As a group, “Multiline Insurance & Brokers” companies pay a dividend yield of 2.1% and pay out 45.6% of their earnings in the form of a dividend. Marsh & McLennan Companies has raised its dividend for 7 consecutive years.

Valuation and Earnings

This table compares Marsh & McLennan Companies and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Marsh & McLennan Companies $13.21 billion $1.77 billion 22.74
Marsh & McLennan Companies Competitors $11.13 billion $534.17 million 144.44

Marsh & McLennan Companies has higher revenue and earnings than its rivals. Marsh & McLennan Companies is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
Marsh & McLennan Companies 13.86% 28.88% 10.26%
Marsh & McLennan Companies Competitors 3.80% 9.18% 2.33%

Risk & Volatility

Marsh & McLennan Companies has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Marsh & McLennan Companies’ rivals have a beta of 1.36, meaning that their average stock price is 36% more volatile than the S&P 500.

Insider and Institutional Ownership

85.1% of Marsh & McLennan Companies shares are held by institutional investors. Comparatively, 62.2% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 1.5% of Marsh & McLennan Companies shares are held by company insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Marsh & McLennan Companies beats its rivals on 10 of the 15 factors compared.

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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