Head-To-Head Review: Marsh & McLennan Companies (MMC) & Crawford & (NYSE:CRD.B)
Marsh & McLennan Companies (NYSE: MMC) and Crawford & (NYSE:CRD.B) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitabiliy, institutional ownership and risk.
This table compares Marsh & McLennan Companies and Crawford &’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 breakdown of recent ratings and target prices for Marsh & McLennan Companies and Crawford &, as provided 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 currently has a consensus price target of $81.90, suggesting a potential upside of 6.25%.
Valuation & Earnings
This table compares Marsh & McLennan Companies and Crawford &’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||2.93||$3.23 billion||$3.62||21.29|
Marsh & McLennan Companies has higher revenue and earnings than Crawford &. Crawford & 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.
Volatility and Risk
Marsh & McLennan Companies has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Crawford & has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.
Marsh & McLennan Companies pays an annual dividend of $1.50 per share and has a dividend yield of 1.9%. Crawford & pays an annual dividend of $0.20 per share. Marsh & McLennan Companies pays out 41.4% of its earnings in the form of a dividend. Crawford & pays out 35.1% 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. Crawford & has raised its dividend for 7 consecutive years.
Institutional & Insider Ownership
85.7% of Marsh & McLennan Companies shares are owned by institutional investors. Comparatively, 17.6% of Crawford & shares are owned by institutional investors. 1.5% of Marsh & McLennan Companies shares are owned by company insiders. Comparatively, 51.0% of Crawford & shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Marsh & McLennan Companies beats Crawford & on 9 of the 13 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.
Crawford & Company Profile
Crawford & Company (Crawford) is an independent provider of claims management solutions to insurance and self-insured entities. The Company’s Crawford Solution offers claims services, business process outsourcing and consulting services for various product lines, including property and casualty claims management; workers’ compensation claims and medical management, and legal settlement administration. Crawford conducts its operations through four segments: U.S. Services, which primarily serves the property and casualty insurance company markets in the United States; International, which serves the property and casualty insurance company, and self-insurance markets outside the United States; Broadspire, which serves the self-insurance marketplace, primarily in the United States, and Garden City Group, which serves the class action, regulatory, mass tort, bankruptcy and other legal settlement markets, primarily in the United States.
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