Head-To-Head Contrast: Marsh & McLennan Companies (NYSE:MRSH) versus Brighthouse Financial (NASDAQ:BHFAM)

Marsh & McLennan Companies (NYSE:MRSH) and Brighthouse Financial (NASDAQ:BHFAM) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Profitability

This table compares Marsh & McLennan Companies and Brighthouse Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marsh & McLennan Companies	14.24%	32.67%	8.44%
Brighthouse Financial	N/A	N/A	N/A

Earnings and Valuation

This table compares Marsh & McLennan Companies and Brighthouse Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marsh & McLennan Companies	$26.98 billion	3.32	$4.16 billion	$8.18	22.95
Brighthouse Financial	$6.35 billion	N/A	N/A	N/A	N/A

Marsh & McLennan Companies has higher revenue and earnings than Brighthouse Financial.

Dividends

Marsh & McLennan Companies pays an annual dividend of $3.96 per share and has a dividend yield of 2.1%. Brighthouse Financial pays an annual dividend of $1.16 per share and has a dividend yield of 12.1%. Marsh & McLennan Companies pays out 48.4% of its earnings in the form of a dividend. Marsh & McLennan Companies has increased its dividend for 15 consecutive years.

Insider and Institutional Ownership

88.0% of Marsh & McLennan Companies shares are held by institutional investors. 0.4% of Marsh & McLennan Companies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Marsh & McLennan Companies and Brighthouse Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marsh & McLennan Companies	1	11	5	1	2.33
Brighthouse Financial	0	0	0	0	0.00

Marsh & McLennan Companies currently has a consensus target price of $201.94, indicating a potential upside of 7.56%. Given Marsh & McLennan Companies’ stronger consensus rating and higher probable upside, research analysts plainly believe Marsh & McLennan Companies is more favorable than Brighthouse Financial.

Summary

Marsh & McLennan Companies beats Brighthouse Financial on 11 of the 13 factors compared between the two stocks.

About Marsh & McLennan Companies

Marsh & McLennan Cos., Inc. is a professional services firm, which engages in offering clients advice and solutions in risk, strategy, and people. It operates through the Risk and Insurance Services, and Consulting segments. The Risk and Insurance Services segment is involved in risk management activities, as well as insurance and reinsurance broking and services. The Consulting segment offers health, wealth, and career solutions and products, and specialized management, strategic, economic, and brand consulting services. The company was founded by Henry W. Marsh and Donald R. McLennan in 1871 and is headquartered in New York, NY.

About Brighthouse Financial

Brighthouse Financial, Inc. provides annuity and life insurance products in the United States. It operates through three segments: Annuities, Life, and Run-off. The Annuities segment consists of variable, fixed, index-linked, and income annuities for contract holders' needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security. The Life segment offers term, universal, whole, and variable life products for policyholders' needs for financial security and protected wealth transfer. The Run-off segment manages structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, funding agreements, and universal life with secondary guarantees. Brighthouse Financial, Inc. was founded in 1863 and is headquartered in Charlotte, North Carolina.