Patriot National (PN) vs. Marsh & McLennan Companies (MMC) Head to Head Review
Patriot National (NYSE: PN) and Marsh & McLennan Companies (NYSE:MMC) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.
This is a breakdown of recent ratings and recommmendations for Patriot National and Marsh & McLennan Companies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marsh & McLennan Companies||0||4||8||0||2.67|
Patriot National currently has a consensus price target of $7.75, suggesting a potential upside of 617.59%. Marsh & McLennan Companies has a consensus price target of $82.50, suggesting a potential downside of 1.43%. Given Patriot National’s higher possible upside, equities analysts clearly believe Patriot National is more favorable than Marsh & McLennan Companies.
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%|
Marsh & McLennan Companies pays an annual dividend of $1.50 per share and has a dividend yield of 1.8%. Patriot National 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.
Risk and Volatility
Patriot National has a beta of 2.75, meaning that its share price is 175% more volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
Earnings and Valuation
This table compares Patriot National and Marsh & McLennan Companies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Patriot National||$233.03 million||0.15||$31.71 million||($0.02)||-54.00|
|Marsh & McLennan Companies||$13.50 billion||3.18||$3.23 billion||$3.62||23.12|
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.
Insider & Institutional Ownership
13.3% of Patriot National shares are owned by institutional investors. Comparatively, 84.8% 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Marsh & McLennan Companies beats Patriot National on 13 of the 17 factors compared between the two stocks.
About Patriot National
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.
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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