MMC vs. AON, AJG, WTW, CB, TD, IBN, HDB, BX, KKR, and BLK
Should you be buying Marsh & McLennan Companies stock or one of its competitors? The main competitors of Marsh & McLennan Companies include AON (AON), Arthur J. Gallagher & Co. (AJG), Willis Towers Watson Public (WTW), Chubb (CB), Toronto-Dominion Bank (TD), ICICI Bank (IBN), HDFC Bank (HDB), Blackstone (BX), KKR & Co. Inc. (KKR), and BlackRock (BLK). These companies are all part of the "finance" sector.
AON (NYSE:AON) and Marsh & McLennan Companies (NYSE:MMC) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation, analyst recommendations, community ranking and media sentiment.
AON has a net margin of 19.17% compared to AON's net margin of 16.84%. AON's return on equity of 34.14% beat Marsh & McLennan Companies' return on equity.
86.1% of AON shares are owned by institutional investors. Comparatively, 88.0% of Marsh & McLennan Companies shares are owned by institutional investors. 1.2% of AON shares are owned by company insiders. Comparatively, 0.4% of Marsh & McLennan Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
In the previous week, Marsh & McLennan Companies had 28 more articles in the media than AON. MarketBeat recorded 44 mentions for Marsh & McLennan Companies and 16 mentions for AON. AON's average media sentiment score of 0.58 beat Marsh & McLennan Companies' score of 0.54 indicating that Marsh & McLennan Companies is being referred to more favorably in the news media.
Marsh & McLennan Companies has higher revenue and earnings than AON. AON 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.
AON pays an annual dividend of $2.46 per share and has a dividend yield of 0.8%. Marsh & McLennan Companies pays an annual dividend of $2.84 per share and has a dividend yield of 1.4%. AON pays out 19.7% of its earnings in the form of a dividend. Marsh & McLennan Companies pays out 36.0% 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. AON has increased its dividend for 13 consecutive years and Marsh & McLennan Companies has increased its dividend for 14 consecutive years. Marsh & McLennan Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
AON received 36 more outperform votes than Marsh & McLennan Companies when rated by MarketBeat users. However, 62.91% of users gave Marsh & McLennan Companies an outperform vote while only 56.57% of users gave AON an outperform vote.
AON currently has a consensus target price of $334.69, suggesting a potential upside of 8.37%. Marsh & McLennan Companies has a consensus target price of $207.69, suggesting a potential upside of 3.35%. Given Marsh & McLennan Companies' higher probable upside, equities analysts plainly believe AON is more favorable than Marsh & McLennan Companies.
AON has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.
Summary
Marsh & McLennan Companies beats AON on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MMC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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