Head to Head Review: Waterdrop (NYSE:WDH) & Marsh & McLennan Companies (NYSE:MMC)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Marsh & McLennan Companies 13.49% 31.17% 9.01%
Waterdrop N/A N/A N/A

Institutional & Insider Ownership

89.8% of Marsh & McLennan Companies shares are owned by institutional investors. Comparatively, 0.3% of Waterdrop shares are owned by institutional investors. 0.8% of Marsh & McLennan Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Marsh & McLennan Companies and Waterdrop, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marsh & McLennan Companies 1 8 5 0 2.29
Waterdrop 0 0 4 0 3.00

Marsh & McLennan Companies currently has a consensus target price of $142.67, indicating a potential downside of 9.48%. Waterdrop has a consensus target price of $11.43, indicating a potential upside of 292.90%. Given Waterdrop’s stronger consensus rating and higher possible upside, analysts clearly believe Waterdrop is more favorable than Marsh & McLennan Companies.

Earnings & Valuation

This table compares Marsh & McLennan Companies and Waterdrop’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marsh & McLennan Companies $17.22 billion 4.64 $2.02 billion $4.97 31.71
Waterdrop $464.05 million 24.72 -$101.74 million N/A N/A

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

Summary

Marsh & McLennan Companies beats Waterdrop on 8 of the 11 factors compared between the two stocks.

About Marsh & McLennan Companies

Marsh & McLennan Cos., Inc. is a professional services firm, which offers clients advice and solutions in risk, strategy and people. It operates through the following business segments: Risk & Insurance Services, and Consulting. The Risk and Insurance Services segment includes risk management activities, as well as insurance and reinsurance broking and services. The company conducts business in this segment through Marsh and Guy carpenter. The Consulting segment includes health, wealth & career services & products, specialized management, economic and brand consulting services. The firm conducts business in this segment through Mercer and Oliver Wyman Group. Marsh & McLennan Cos was founded by Henry W. Marsh and Donald R. McLennan in 1871 and is headquartered in New York, NY.

About Waterdrop

Waterdrop Inc. provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. It operates medical crowdfunding and mutual aid platforms. The company was founded in 2016 and is headquartered in Beijing, the People's Republic of China.

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