Marsh & McLennan Companies (NYSE:MMC) and The Baldwin Insurance Group (NASDAQ:BWIN) Critical Review

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

Profitability

This table compares The Baldwin Insurance Group and Marsh & McLennan Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Baldwin Insurance Group	-4.29%	9.21%	2.82%
Marsh & McLennan Companies	16.97%	33.92%	8.85%

Insider and Institutional Ownership

70.4% of The Baldwin Insurance Group shares are owned by institutional investors. Comparatively, 88.0% of Marsh & McLennan Companies shares are owned by institutional investors. 20.1% of The Baldwin Insurance Group shares are owned by company insiders. Comparatively, 0.3% 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 stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for The Baldwin Insurance Group and Marsh & McLennan Companies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Baldwin Insurance Group	0	0	3	1	3.25
Marsh & McLennan Companies	2	10	4	0	2.13

The Baldwin Insurance Group presently has a consensus price target of $41.75, suggesting a potential upside of 4.30%. Marsh & McLennan Companies has a consensus price target of $214.25, suggesting a potential downside of 1.15%. Given The Baldwin Insurance Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe The Baldwin Insurance Group is more favorable than Marsh & McLennan Companies.

Risk and Volatility

The Baldwin Insurance Group has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Valuation & Earnings

This table compares The Baldwin Insurance Group and Marsh & McLennan Companies’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Baldwin Insurance Group	$1.22 billion	3.86	-$90.14 million	($0.92)	-43.51
Marsh & McLennan Companies	$22.74 billion	4.70	$3.76 billion	$7.88	27.51

Marsh & McLennan Companies has higher revenue and earnings than The Baldwin Insurance Group. The Baldwin Insurance Group is trading at a lower price-to-earnings ratio than Marsh & McLennan Companies, indicating that it is currently the more affordable of the two stocks.

Summary

Marsh & McLennan Companies beats The Baldwin Insurance Group on 9 of the 14 factors compared between the two stocks.

About The Baldwin Insurance Group

The Baldwin Insurance Group, Inc. operates as an independent insurance distribution firm that delivers insurance and risk management solutions in the United States. It operates through three segments: Insurance Advisory Solutions; Underwriting, Capacity & Technology Solutions; and Mainstreet Insurance Solutions. The Insurance Advisory Solutions segment provides commercial risk management, employee benefits, and private risk management solutions for businesses and high-net-worth individuals, as well as their families. The Underwriting, Capacity & Technology Solutions segment offers Future platform, that manufactures technology-enabled insurance products suite comprises personal, commercial, and specialty lines; specialty wholesale broker business that delivers professionals, individuals, and niche industry businesses; and reinsurance brokerage services. The Mainstreet Insurance Solutions segment provides personal insurance, commercial insurance, and life and health solutions to individuals and businesses in communities. The company was formerly known as BRP Group, Inc. and changed its name to The Baldwin Insurance Group, Inc. in May 2024. The Baldwin Insurance Group, Inc. was founded in 2011 and is headquartered in Tampa, Florida.

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.