Brighthouse Financial (NASDAQ:BHFAM – Get Free Report) and Marsh & McLennan Companies (NYSE:MRSH – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.
Analyst Ratings
This is a breakdown of current recommendations for Brighthouse Financial and Marsh & McLennan Companies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brighthouse Financial | 0 | 0 | 0 | 0 | 0.00 |
| Marsh & McLennan Companies | 1 | 11 | 5 | 1 | 2.33 |
Marsh & McLennan Companies has a consensus target price of $203.50, indicating a potential upside of 7.36%. Given Marsh & McLennan Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Marsh & McLennan Companies is more favorable than Brighthouse Financial.
Dividends
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 company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Brighthouse Financial and Marsh & McLennan Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brighthouse Financial | N/A | N/A | N/A |
| Marsh & McLennan Companies | 14.24% | 32.67% | 8.44% |
Valuation and Earnings
This table compares Brighthouse Financial and Marsh & McLennan Companies”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brighthouse Financial | $6.35 billion | N/A | N/A | N/A | N/A |
| Marsh & McLennan Companies | $26.98 billion | 3.35 | $4.16 billion | $8.18 | 23.17 |
Marsh & McLennan Companies has higher revenue and earnings than Brighthouse Financial.
Summary
Marsh & McLennan Companies beats Brighthouse Financial on 11 of the 13 factors compared between the two stocks.
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.
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.
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