MMC vs. AON, AJG, BRO, EHTH, WTW, ERIE, RYAN, EQH, CRVL, and ACT
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), CorVel (CRVL), and Enact (ACT). These companies are all part of the "insurance agents, brokers, & service" industry.
Marsh & McLennan Companies vs.
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 companies based on the strength of their institutional ownership, risk, media sentiment, valuation, community ranking, profitability, analyst recommendations, earnings and dividends.
AON pays an annual dividend of $2.70 per share and has a dividend yield of 0.8%. Marsh & McLennan Companies pays an annual dividend of $3.26 per share and has a dividend yield of 1.5%. AON pays out 22.8% of its earnings in the form of a dividend. Marsh & McLennan Companies pays out 40.1% 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. Marsh & McLennan Companies has raised its dividend for 15 consecutive years. Marsh & McLennan Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
AON currently has a consensus target price of $362.06, indicating a potential upside of 1.00%. Marsh & McLennan Companies has a consensus target price of $228.13, indicating a potential upside of 7.74%. Given Marsh & McLennan Companies' higher probable upside, analysts clearly believe Marsh & McLennan Companies is more favorable than AON.
AON received 38 more outperform votes than Marsh & McLennan Companies when rated by MarketBeat users. However, 61.81% of users gave Marsh & McLennan Companies an outperform vote while only 55.52% of users gave AON an outperform vote.
86.1% of AON shares are held by institutional investors. Comparatively, 88.0% of Marsh & McLennan Companies shares are held by institutional investors. 1.3% of AON shares are held by company insiders. Comparatively, 0.3% of Marsh & McLennan Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Marsh & McLennan Companies has a net margin of 16.82% compared to AON's net margin of 16.32%. AON's return on equity of 107.43% beat Marsh & McLennan Companies' return on equity.
AON has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.
In the previous week, AON and AON both had 7 articles in the media. Marsh & McLennan Companies' average media sentiment score of 0.91 beat AON's score of 0.49 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. Marsh & McLennan Companies is trading at a lower price-to-earnings ratio than AON, indicating that it is currently the more affordable of the two stocks.
Summary
Marsh & McLennan Companies beats AON on 11 of the 20 factors compared between the two stocks.
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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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This page (NYSE:MMC) was last updated on 12/21/2024 by MarketBeat.com Staff