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MA vs MMC

MA
Mastercard Incorporated
NEUTRAL
Price
$499.66
Market Cap
$445.92B
Sector
Financial Services
AI Confidence
80%
MMC
Marsh & McLennan Companies, Inc.
NEUTRAL
Price
$182.81
Market Cap
$90.07B
Sector
Financial Services
AI Confidence
75%

Valuation

P/E Ratio
MA
30.28
MMC
21.92
Forward P/E
MA
22.05
MMC
19.39
P/B Ratio
MA
57.74
MMC
5.91
P/S Ratio
MA
13.6
MMC
3.4
EV/EBITDA
MA
22.13
MMC
14.06

Profitability

Gross Margin
MA
100.0%
MMC
43.95%
Operating Margin
MA
57.73%
MMC
19.24%
Profit Margin
MA
45.65%
MMC
15.6%
ROE
MA
209.91%
MMC
28.73%
ROA
MA
23.72%
MMC
7.88%

Growth

Revenue Growth
MA
17.6%
MMC
11.5%
Earnings Growth
MA
24.2%
MMC
0.0%

Financial Health

Debt/Equity
MA
2.56
MMC
1.4
Current Ratio
MA
1.03
MMC
1.12
Quick Ratio
MA
0.68
MMC
0.52

Dividends

Dividend Yield
MA
0.7%
MMC
1.97%
Payout Ratio
MA
18.4%
MMC
41.13%

AI Verdict

MA NEUTRAL

MA shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (45.6% margin)
Strong revenue growth of 17.6%
Strong ROE of 209.9%
Risks
High valuation with P/E of 30.3
Premium vs Graham Number ($56.68)
High debt burden with D/E of 2.56
MMC NEUTRAL

Marsh & McLennan Companies (MMC) trades at a premium valuation with solid long-term profitability and a disciplined capital allocation track record, but faces near-term headwinds reflected in flat year-over-year earnings growth and weakening quarterly EPS momentum. The stock has significantly underperformed over the past year (-16.1%) and six months (-20.3%), lagging both its historical performance and several peers in the Financial Services sector, despite consistent earnings beats over the last 25 quarters. While its ROE of 28.73% and operating margin of 19.24% are strong relative to sector averages, elevated leverage (Debt/Equity: 1.40) and insider selling activity raise caution. Analysts broadly concur with a 'hold' rating and imply 17% upside to a $214.26 target, suggesting limited near-term catalysts despite attractive relative fundamentals.

Strengths
Exceptional profitability with ROE of 28.73%, significantly above sector average of 25.01% and peer group (e.g., KKR: 7.67%, APO: 16.55%)
High operating margin of 19.24% and gross margin of 43.95%, reflecting pricing power and operational efficiency in the insurance brokerage segment
Consistent earnings outperformance: 22 out of 25 quarters beat estimates, with an average surprise of +4.8% over the last 12 quarters
Risks
Earnings growth stagnation: 0.0% YoY and -24.5% QoQ EPS growth indicate near-term profitability compression despite top-line momentum
Premium valuation: Forward P/E of 19.39 exceeds sector average of 20.54 but is less compelling given slower growth than high-growth peers like APO (26.4% revenue growth)
High leverage with Debt/Equity of 1.40, well above sector average of 0.68, increasing vulnerability to interest rate shocks or economic downturn

Compare Another Pair

MA vs MMC: Head-to-Head Comparison

This page compares Mastercard Incorporated (MA) and Marsh & McLennan Companies, Inc. (MMC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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