Reviewing Marsh & McLennan Companies (NYSE:MRSH) & Brighthouse Financial (NASDAQ:BHFAM)

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

Insider & Institutional Ownership

88.0% of Marsh & McLennan Companies shares are owned by institutional investors. 0.4% of Marsh & McLennan Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Brighthouse Financial pays an annual dividend of $1.16 per share and has a dividend yield of 12.1%. Marsh & McLennan Companies pays an annual dividend of $3.96 per share and has a dividend yield of 2.1%. 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.

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 & Earnings

This table compares Brighthouse Financial and Marsh & McLennan Companies”s top-line revenue, earnings per share 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	3.32	$4.16 billion	$8.18	22.95

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

Analyst Recommendations

This is a summary 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 price target of $201.94, suggesting a potential upside of 7.56%. Given Marsh & McLennan Companies’ stronger consensus rating and higher probable upside, analysts clearly 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 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.