MMC vs. AON, AJG, BRO, EHTH, WTW, ERIE, RYAN, EQH, ACT, and CRVL
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), Brown & Brown (BRO), eHealth (EHTH), Willis Towers Watson Public (WTW), Erie Indemnity (ERIE), Ryan Specialty (RYAN), Equitable (EQH), Enact (ACT), and CorVel (CRVL). These companies are all part of the "insurance agents, brokers, & service" industry.
AON (NYSE:AON) and Marsh & McLennan Companies (NYSE:MMC) are both large-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, community ranking, media sentiment, risk, profitability, earnings and institutional ownership.
AON currently has a consensus target price of $321.86, suggesting a potential upside of 14.28%. Marsh & McLennan Companies has a consensus target price of $210.27, suggesting a potential upside of 1.29%. Given Marsh & McLennan Companies' higher possible upside, research analysts clearly believe AON is more favorable than Marsh & McLennan Companies.
AON received 36 more outperform votes than Marsh & McLennan Companies when rated by MarketBeat users. However, 62.83% of users gave Marsh & McLennan Companies an outperform vote while only 56.16% of users gave AON an outperform vote.
AON has a net margin of 19.04% compared to AON's net margin of 16.84%. AON's return on equity of 34.14% beat Marsh & McLennan Companies' return on equity.
AON pays an annual dividend of $2.70 per share and has a dividend yield of 1.0%. Marsh & McLennan Companies pays an annual dividend of $2.84 per share and has a dividend yield of 1.4%. AON pays out 21.2% 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 raised its dividend for 13 consecutive years and Marsh & McLennan Companies has raised 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.
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.
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 insiders. Comparatively, 0.3% of Marsh & McLennan Companies shares 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.
In the previous week, AON had 2 more articles in the media than Marsh & McLennan Companies. MarketBeat recorded 10 mentions for AON and 8 mentions for Marsh & McLennan Companies. AON's average media sentiment score of 1.26 beat Marsh & McLennan Companies' score of 0.53 indicating that Marsh & McLennan Companies is being referred to more favorably in the news media.
AON has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
Summary
Marsh & McLennan Companies beats AON on 12 of the 20 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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