Marsh (NYSE:MRSH) and Cheche Group (NASDAQ:CCG) Critical Review

Cheche Group (NASDAQ:CCG) and Marsh (NYSE:MRSH) are both financial services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Dividends

Cheche Group pays an annual dividend of $0.36 per share and has a dividend yield of 45.6%. Marsh pays an annual dividend of $3.60 per share and has a dividend yield of 1.9%. Cheche Group pays out -327.3% of its earnings in the form of a dividend. Marsh pays out 42.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cheche Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Cheche Group and Marsh’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cheche Group	N/A	N/A	N/A
Marsh	N/A	N/A	N/A

Institutional and Insider Ownership

19.8% of Cheche Group shares are owned by institutional investors. Comparatively, 88.0% of Marsh shares are owned by institutional investors. 1.4% of Cheche Group shares are owned by company insiders. Comparatively, 0.4% of Marsh shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Cheche Group and Marsh”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheche Group	$3.18 billion	0.02	-$8.52 million	($0.11)	-7.18
Marsh	$26.45 billion	3.49	$4.13 billion	$8.43	22.33

Marsh has higher revenue and earnings than Cheche Group. Cheche Group is trading at a lower price-to-earnings ratio than Marsh, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cheche Group and Marsh, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheche Group	1	0	0	0	1.00
Marsh	0	3	0	0	2.00

Marsh has a consensus target price of $199.33, suggesting a potential upside of 5.91%. Given Marsh’s stronger consensus rating and higher possible upside, analysts plainly believe Marsh is more favorable than Cheche Group.

Risk and Volatility

Cheche Group has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Marsh has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Summary

Marsh beats Cheche Group on 9 of the 12 factors compared between the two stocks.

About Cheche Group

Cheche Group Inc. offer auto insurance technology platform. The company evolved into a comprehensive, data-driven technology platform which offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions principally in China. Cheche Group Inc., formerly known as Prime Impact, is headquartered in Beijing, China.

About Marsh

Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. It operates in two segments, Risk and Insurance Services, and Consulting. The Risk and Insurance Services segment offers risk management services, such as risk advice, risk transfer, and risk control and mitigation solutions, as well as insurance and reinsurance broking, catastrophe and financial modeling, and related advisory services; and insurance program management services. This segment serves businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Consulting segment provides health, wealth, and career consulting services and products; and specialized management, as well as economic and brand consulting services. Marsh & McLennan Companies, Inc. was founded in 1871 and is headquartered in New York, New York.