G4S (OTCMKTS:ALIZY) and Marsh & McLennan Companies (NYSE:MMC) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
Institutional & Insider Ownership
0.2% of G4S shares are held by institutional investors. Comparatively, 87.5% of Marsh & McLennan Companies shares are held by institutional investors. 0.9% of Marsh & McLennan Companies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
G4S has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
Earnings & Valuation
This table compares G4S and Marsh & McLennan Companies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|G4S||$159.47 billion||0.54||$8.86 billion||N/A||N/A|
|Marsh & McLennan Companies||$16.65 billion||3.26||$1.74 billion||$4.66||23.04|
G4S has higher revenue and earnings than Marsh & McLennan Companies.
This table compares G4S and Marsh & McLennan Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marsh & McLennan Companies||10.33%||30.94%||7.75%|
G4S pays an annual dividend of $0.72 per share and has a dividend yield of 3.5%. Marsh & McLennan Companies pays an annual dividend of $1.82 per share and has a dividend yield of 1.7%. Marsh & McLennan Companies pays out 39.1% of its earnings in the form of a dividend. Marsh & McLennan Companies has raised its dividend for 10 consecutive years.
This is a breakdown of recent ratings and price targets for G4S and Marsh & McLennan Companies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marsh & McLennan Companies||0||3||6||0||2.67|
Marsh & McLennan Companies has a consensus target price of $110.33, suggesting a potential upside of 2.76%. Given Marsh & McLennan Companies’ stronger consensus rating and higher probable upside, analysts plainly believe Marsh & McLennan Companies is more favorable than G4S.
Marsh & McLennan Companies beats G4S on 11 of the 16 factors compared between the two stocks.
Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide. The company's Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel insurance products to private and corporate customers. Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private health, supplemental health, and long-term care insurance products. The company's Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, as well as alternative products; and investment management services. Its Corporate and Other segment provides various banking products for corporate and retail clients; and alternative investment management services in the private equity, real estate, renewable energy, and infrastructure sectors. Allianz SE was founded in 1890 and is headquartered in Munich, Germany.
About Marsh & McLennan Companies
Marsh & McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. It operates in two segments, Risk and Insurance Services, and Consulting. The Risk and Insurance Services segment offers risk management services, such as risk advice, risk transfer, and risk control and mitigation solutions, as well as insurance, reinsurance broking, catastrophe and financial modeling, and related advisory services; and insurance program management services. This segment serves businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Consulting segment provides health, wealth, and career services and products; and specialized management, as well as economic and brand consulting services. The company was founded in 1871 and is headquartered in New York, New York.
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