Critical Contrast: Marsh & McLennan Companies (MMC) & Its Competitors
Marsh & McLennan Companies (NYSE: MMC) is one of 22 publicly-traded companies in the “Multiline Insurance & Brokers” industry, but how does it weigh in compared to its rivals? We will compare Marsh & McLennan Companies to related businesses based on the strength of its earnings, profitability, valuation, analyst recommendations, dividends, institutional ownership and risk.
This is a summary of current ratings and target prices for Marsh & McLennan Companies and its rivals, as reported by MarketBeat.
|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||799||848||21||2.44|
Valuation and Earnings
This table compares Marsh & McLennan Companies and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Marsh & McLennan Companies||$13.21 billion||$1.77 billion||23.30|
|Marsh & McLennan Companies Competitors||$11.13 billion||$534.17 million||161.94|
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.
Institutional & Insider Ownership
86.0% of Marsh & McLennan Companies shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Multiline Insurance & Brokers” companies are owned by institutional investors. 1.5% of Marsh & McLennan Companies shares are owned by insiders. Comparatively, 15.5% of shares of all “Multiline Insurance & Brokers” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
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 2.0% and pay out 50.5% of their earnings in the form of a dividend. Marsh & McLennan Companies has increased its dividend for 7 consecutive years.
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||6.14%||11.23%||2.56%|
Risk and Volatility
Marsh & McLennan Companies has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Marsh & McLennan Companies’ rivals have a beta of 1.28, suggesting that their average share price is 28% more volatile than the S&P 500.
Marsh & McLennan Companies beats its rivals on 10 of the 15 factors compared.
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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