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 similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, risk, profitability, dividends and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Marsh & McLennan Companies and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marsh & McLennan Companies 0 4 6 0 2.60
Marsh & McLennan Companies Competitors 111 693 791 21 2.45

Marsh & McLennan Companies currently has a consensus target price of $84.60, suggesting a potential upside of 1.74%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 4.63%. Given Marsh & McLennan Companies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Marsh & McLennan Companies is more favorable than its rivals.

Insider & Institutional Ownership

85.2% of Marsh & McLennan Companies shares are owned by institutional investors. Comparatively, 62.2% 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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 2.1% and pay out 45.6% of their earnings in the form of a dividend. Marsh & McLennan Companies has increased its dividend for 7 consecutive years.

Risk and Volatility

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

Profitability

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 4.25% 10.13% 2.52%

Earnings and Valuation

This table compares Marsh & McLennan Companies and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Marsh & McLennan Companies $13.21 billion $1.77 billion 22.78
Marsh & McLennan Companies Competitors $11.13 billion $534.17 million 217.63

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.

Summary

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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