Marsh & McLennan Companies (NYSE: MMC) is one of 22 publicly-traded companies in the “Multiline Insurance & Brokers” industry, but how does it compare to its competitors? We will compare Marsh & McLennan Companies to similar businesses based on the strength of its analyst recommendations, dividends, risk, institutional ownership, earnings, profitability and valuation.

Insider & Institutional Ownership

85.0% of Marsh & McLennan Companies shares are held by institutional investors. Comparatively, 62.1% 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Marsh & McLennan Companies and its competitors, as provided 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 112 797 845 21 2.44

Marsh & McLennan Companies currently has a consensus price target of $84.60, indicating a potential upside of 2.73%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 3.60%. Given Marsh & McLennan Companies’ stronger consensus rating and higher possible upside, analysts clearly believe Marsh & McLennan Companies is more favorable than its competitors.

Profitability

This table compares Marsh & McLennan Companies and its competitors’ 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 6.11% 11.12% 2.51%

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Marsh & McLennan Companies $13.21 billion $1.77 billion 22.56
Marsh & McLennan Companies Competitors $11.13 billion $534.17 million 161.91

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

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 2.0% and pay out 49.7% of their earnings in the form of a dividend. Marsh & McLennan Companies has raised its dividend for 7 consecutive years.

Volatility & Risk

Marsh & McLennan Companies has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Marsh & McLennan Companies’ competitors have a beta of 1.39, indicating that their average share price is 39% more volatile than the S&P 500.

Summary

Marsh & McLennan Companies beats its competitors 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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