Analyzing Marsh & McLennan Companies (MMC) and Brighthouse Financial (BHF)
Marsh & McLennan Companies (NYSE: MMC) and Brighthouse Financial (NYSE:BHF) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.
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%|
This is a summary of recent ratings and recommmendations for Marsh & McLennan Companies and Brighthouse Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marsh & McLennan Companies||0||3||9||0||2.75|
Marsh & McLennan Companies presently has a consensus price target of $81.90, indicating a potential upside of 0.17%. Brighthouse Financial has a consensus price target of $69.45, indicating a potential upside of 25.85%. Given Brighthouse Financial’s higher possible 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 top-line 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||3.10||$3.23 billion||$3.62||22.59|
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.
Institutional and Insider Ownership
84.9% of Marsh & McLennan Companies shares are held by institutional investors. 1.5% of Marsh & McLennan Companies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds 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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