Analyzing Marsh & McLennan Companies (NYSE:MMC) and TWFG (NASDAQ:TWFG)

Marsh & McLennan Companies (NYSE:MMC) and TWFG (NASDAQ:TWFG) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Marsh & McLennan Companies and TWFG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marsh & McLennan Companies	2	11	2	0	2.00
TWFG	0	3	6	0	2.67

Marsh & McLennan Companies currently has a consensus price target of $225.33, suggesting a potential upside of 1.28%. TWFG has a consensus price target of $27.86, suggesting a potential downside of 9.73%. Given Marsh & McLennan Companies’ higher possible upside, analysts clearly believe Marsh & McLennan Companies is more favorable than TWFG.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marsh & McLennan Companies	16.97%	33.92%	8.85%
TWFG	N/A	N/A	N/A

Earnings and Valuation

This table compares Marsh & McLennan Companies and TWFG”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marsh & McLennan Companies	$23.95 billion	4.58	$3.76 billion	$7.88	28.23
TWFG	$172.93 million	2.64	$26.10 million	N/A	N/A

Marsh & McLennan Companies has higher revenue and earnings than TWFG.

Institutional and Insider Ownership

88.0% of Marsh & McLennan Companies shares are owned by institutional investors. 0.3% of Marsh & McLennan Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Marsh & McLennan Companies beats TWFG on 9 of the 11 factors compared between the two stocks.

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 through Risk and Insurance Services, and Consulting segments. 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 and reinsurance broking, strategic advisory services, and analytics solutions, and insurance program management services. It serves businesses, public entities, insurance companies, associations, professional services organizations, and private clients. The Consulting segment provides health, wealth and career advice, solutions and products; and specialized management, strategic, economic, and brand consulting services. Marsh & McLennan Companies, Inc. was founded in 1871 and is headquartered in New York, New York.

About TWFG

TWFG, Inc. operates an independent distribution platform for personal and commercial insurance products in the United States. Its personal and commercial insurance products include auto, home, renters, life, health, motorcycle, umbrella, boat, recreational vehicle, flood, wind, event, luxury item, general liability, property, business auto, workers’ compensation, business owner policy, and professional liability insurance products, as well as commercial bonds and group benefits. The company was founded in 2001 and is based in The Woodlands, Texas. TWFG, Inc. operates as a subsidiary of Bunch Family Holdings, LLC.