AXP vs. MMC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AXP and MMC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AXP’s market capitalization of 229.88 billion USD is substantially larger than MMC’s 105.98 billion USD, indicating a significant difference in their market valuations.
AXP’s beta of 1.25 points to significantly higher volatility compared to MMC (beta: 0.83), suggesting AXP has greater potential for both gains and losses relative to market movements.
| Symbol | AXP | MMC |
|---|---|---|
| Company Name | American Express Company | Marsh & McLennan Companies, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Insurance - Brokers |
| CEO | Stephen Joseph Squeri | John Quinlan Doyle |
| Price | 328.13 USD | 215.08 USD |
| Market Cap | 229.88 billion USD | 105.98 billion USD |
| Beta | 1.25 | 0.83 |
| Exchange | NYSE | NYSE |
| IPO Date | June 1, 1972 | December 30, 1987 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AXP and MMC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AXP
34.05%
Financial - Credit Services Industry
- Max
- 34.05%
- Q3
- 18.70%
- Median
- 10.57%
- Q1
- 3.55%
- Min
- -12.12%
In the upper quartile for the Financial - Credit Services industry, AXP’s Return on Equity of 34.05% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
MMC
29.68%
Insurance - Brokers Industry
- Max
- 40.40%
- Q3
- 30.52%
- Median
- 22.48%
- Q1
- 4.38%
- Min
- -5.38%
MMC’s Return on Equity of 29.68% is on par with the norm for the Insurance - Brokers industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AXP
8.40%
Financial - Credit Services Industry
- Max
- 68.11%
- Q3
- 32.26%
- Median
- 9.52%
- Q1
- 3.37%
- Min
- -7.03%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Credit Services industry.
MMC
11.62%
Insurance - Brokers Industry
- Max
- 11.62%
- Q3
- 11.18%
- Median
- 8.38%
- Q1
- 2.57%
- Min
- -1.51%
In the upper quartile for the Insurance - Brokers industry, MMC’s Return on Invested Capital of 11.62% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AXP
13.64%
Financial - Credit Services Industry
- Max
- 39.42%
- Q3
- 20.10%
- Median
- 12.91%
- Q1
- 5.82%
- Min
- -14.80%
AXP’s Net Profit Margin of 13.64% is aligned with the median group of its peers in the Financial - Credit Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
MMC
16.13%
Insurance - Brokers Industry
- Max
- 21.33%
- Q3
- 15.86%
- Median
- 10.63%
- Q1
- 1.06%
- Min
- -2.28%
A Net Profit Margin of 16.13% places MMC in the upper quartile for the Insurance - Brokers industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AXP
17.36%
Financial - Credit Services Industry
- Max
- 77.26%
- Q3
- 42.86%
- Median
- 17.99%
- Q1
- 10.82%
- Min
- -14.94%
AXP’s Operating Profit Margin of 17.36% is around the midpoint for the Financial - Credit Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
MMC
24.11%
Insurance - Brokers Industry
- Max
- 28.73%
- Q3
- 23.24%
- Median
- 21.46%
- Q1
- 10.89%
- Min
- 5.35%
An Operating Profit Margin of 24.11% places MMC in the upper quartile for the Insurance - Brokers industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AXP | MMC |
|---|---|---|
| Return on Equity (TTM) | 34.05% | 29.68% |
| Return on Assets (TTM) | 3.64% | 7.09% |
| Return on Invested Capital (TTM) | 8.40% | 11.62% |
| Net Profit Margin (TTM) | 13.64% | 16.13% |
| Operating Profit Margin (TTM) | 17.36% | 24.11% |
| Gross Profit Margin (TTM) | 82.37% | 42.60% |
Financial Strength
Current Ratio
AXP
0.32
Financial - Credit Services Industry
- Max
- 8.15
- Q3
- 4.39
- Median
- 2.62
- Q1
- 1.06
- Min
- 0.15
For the Financial - Credit Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
MMC
1.14
Insurance - Brokers Industry
- Max
- 1.90
- Q3
- 1.76
- Median
- 1.29
- Q1
- 1.14
- Min
- 1.05
MMC’s Current Ratio of 1.14 falls into the lower quartile for the Insurance - Brokers industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AXP
1.69
Financial - Credit Services Industry
- Max
- 4.69
- Q3
- 2.55
- Median
- 1.20
- Q1
- 0.55
- Min
- 0.00
AXP’s Debt-to-Equity Ratio of 1.69 is typical for the Financial - Credit Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
MMC
1.59
Insurance - Brokers Industry
- Max
- 4.59
- Q3
- 2.12
- Median
- 0.59
- Q1
- 0.07
- Min
- 0.01
MMC’s Debt-to-Equity Ratio of 1.59 is typical for the Insurance - Brokers industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
AXP
1.59
Financial - Credit Services Industry
- Max
- 17.48
- Q3
- 7.42
- Median
- 1.59
- Q1
- 0.38
- Min
- -7.77
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Credit Services industry.
MMC
7.68
Insurance - Brokers Industry
- Max
- 29.40
- Q3
- 16.65
- Median
- 7.25
- Q1
- 4.20
- Min
- 1.60
MMC’s Interest Coverage Ratio of 7.68 is positioned comfortably within the norm for the Insurance - Brokers industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AXP | MMC |
|---|---|---|
| Current Ratio (TTM) | 0.32 | 1.14 |
| Quick Ratio (TTM) | 0.32 | 1.14 |
| Debt-to-Equity Ratio (TTM) | 1.69 | 1.59 |
| Debt-to-Asset Ratio (TTM) | 0.19 | 0.39 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.03 | 2.94 |
| Interest Coverage Ratio (TTM) | 1.59 | 7.68 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AXP and MMC. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AXP
0.93%
Financial - Credit Services Industry
- Max
- 14.68%
- Q3
- 2.97%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
AXP’s Dividend Yield of 0.93% is consistent with its peers in the Financial - Credit Services industry, providing a dividend return that is standard for its sector.
MMC
1.52%
Insurance - Brokers Industry
- Max
- 2.63%
- Q3
- 1.34%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.52%, MMC offers a more attractive income stream than most of its peers in the Insurance - Brokers industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
AXP
20.01%
Financial - Credit Services Industry
- Max
- 169.58%
- Q3
- 38.15%
- Median
- 18.30%
- Q1
- 0.00%
- Min
- 0.00%
AXP’s Dividend Payout Ratio of 20.01% is within the typical range for the Financial - Credit Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
MMC
38.70%
Insurance - Brokers Industry
- Max
- 45.22%
- Q3
- 39.19%
- Median
- 29.49%
- Q1
- 3.85%
- Min
- 0.00%
MMC’s Dividend Payout Ratio of 38.70% is within the typical range for the Insurance - Brokers industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AXP | MMC |
|---|---|---|
| Dividend Yield (TTM) | 0.93% | 1.52% |
| Dividend Payout Ratio (TTM) | 20.01% | 38.70% |
Valuation
Price-to-Earnings Ratio
AXP
22.38
Financial - Credit Services Industry
- Max
- 42.04
- Q3
- 25.88
- Median
- 12.28
- Q1
- 9.55
- Min
- 3.09
AXP’s P/E Ratio of 22.38 is within the middle range for the Financial - Credit Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
MMC
26.19
Insurance - Brokers Industry
- Max
- 45.50
- Q3
- 35.20
- Median
- 30.00
- Q1
- 28.34
- Min
- 26.42
MMC’s P/E Ratio of 26.19 is below the typical range for the Insurance - Brokers industry. This may indicate that the stock is potentially undervalued, or it could reflect market concerns about the company’s future prospects.
Forward P/E to Growth Ratio
AXP
2.10
Financial - Credit Services Industry
- Max
- 2.76
- Q3
- 1.57
- Median
- 0.82
- Q1
- 0.51
- Min
- 0.06
A Forward PEG Ratio of 2.10 places AXP in the upper quartile for the Financial - Credit Services industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
MMC
2.49
Insurance - Brokers Industry
- Max
- 3.32
- Q3
- 3.00
- Median
- 2.77
- Q1
- 2.41
- Min
- 2.09
MMC’s Forward PEG Ratio of 2.49 is within the middle range of its peers in the Insurance - Brokers industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
AXP
3.05
Financial - Credit Services Industry
- Max
- 6.24
- Q3
- 3.02
- Median
- 1.54
- Q1
- 0.75
- Min
- 0.32
The P/S Ratio is often not a primary valuation tool in the Financial - Credit Services industry.
MMC
4.23
Insurance - Brokers Industry
- Max
- 7.38
- Q3
- 5.34
- Median
- 4.27
- Q1
- 2.32
- Min
- 0.27
MMC’s P/S Ratio of 4.23 aligns with the market consensus for the Insurance - Brokers industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
AXP
7.37
Financial - Credit Services Industry
- Max
- 3.58
- Q3
- 2.84
- Median
- 1.28
- Q1
- 0.84
- Min
- 0.07
At 7.37, AXP’s P/B Ratio is at an extreme premium to the Financial - Credit Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
MMC
7.52
Insurance - Brokers Industry
- Max
- 10.90
- Q3
- 8.10
- Median
- 6.93
- Q1
- 4.15
- Min
- 1.12
MMC’s P/B Ratio of 7.52 is within the conventional range for the Insurance - Brokers industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AXP | MMC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 22.38 | 26.19 |
| Forward PEG Ratio (TTM) | 2.10 | 2.49 |
| Price-to-Sales Ratio (P/S, TTM) | 3.05 | 4.23 |
| Price-to-Book Ratio (P/B, TTM) | 7.37 | 7.52 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.31 | 25.37 |
| EV-to-EBITDA (TTM) | 15.56 | 17.90 |
| EV-to-Sales (TTM) | 3.06 | 5.06 |