Seek Returns logo

IBKR vs. MMC: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at IBKR and MMC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolIBKRMMC
Company NameInteractive Brokers Group, Inc.Marsh & McLennan Companies, Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryCapital MarketsInsurance
Market Capitalization112.34 billion USD98.96 billion USD
ExchangeNasdaqGSNYSE
Listing DateMay 4, 2007February 21, 1973
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of IBKR 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.

IBKR vs. MMC: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolIBKRMMC
5-Day Price Return6.75%0.94%
13-Week Price Return24.18%-7.83%
26-Week Price Return58.26%-15.61%
52-Week Price Return100.15%-10.01%
Month-to-Date Return10.56%-2.08%
Year-to-Date Return55.78%-5.12%
10-Day Avg. Volume5.14M2.35M
3-Month Avg. Volume6.35M2.32M
3-Month Volatility34.31%15.54%
Beta1.230.80

Profitability

Return on Equity (TTM)

IBKR

18.88%

Capital Markets Industry

Max
38.97%
Q3
22.24%
Median
13.52%
Q1
8.61%
Min
-4.25%

IBKR’s Return on Equity of 18.88% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

MMC

29.03%

Insurance Industry

Max
30.96%
Q3
18.76%
Median
14.22%
Q1
10.34%
Min
1.73%

In the upper quartile for the Insurance industry, MMC’s Return on Equity of 29.03% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

IBKR vs. MMC: A comparison of their Return on Equity (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Net Profit Margin (TTM)

IBKR

8.57%

Capital Markets Industry

Max
69.91%
Q3
37.24%
Median
24.30%
Q1
13.06%
Min
-15.18%

Falling into the lower quartile for the Capital Markets industry, IBKR’s Net Profit Margin of 8.57% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

MMC

16.00%

Insurance Industry

Max
26.78%
Q3
14.69%
Median
9.87%
Q1
6.59%
Min
-3.51%

A Net Profit Margin of 16.00% places MMC in the upper quartile for the Insurance industry, signifying strong profitability and more effective cost management than most of its peers.

IBKR vs. MMC: A comparison of their Net Profit Margin (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Operating Profit Margin (TTM)

IBKR

42.00%

Capital Markets Industry

Max
84.86%
Q3
47.16%
Median
32.23%
Q1
18.65%
Min
-21.87%

IBKR’s Operating Profit Margin of 42.00% is around the midpoint for the Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.

MMC

23.58%

Insurance Industry

Max
34.52%
Q3
20.17%
Median
14.46%
Q1
9.62%
Min
-2.51%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

IBKR vs. MMC: A comparison of their Operating Profit Margin (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Profitability at a Glance

SymbolIBKRMMC
Return on Equity (TTM)18.88%29.03%
Return on Assets (TTM)0.53%7.44%
Net Profit Margin (TTM)8.57%16.00%
Operating Profit Margin (TTM)42.00%23.58%
Gross Profit Margin (TTM)53.08%--

Financial Strength

Current Ratio (MRQ)

IBKR

0.96

Capital Markets Industry

Max
3.37
Q3
1.81
Median
1.01
Q1
0.56
Min
0.04

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

MMC

1.20

Insurance Industry

Max
2.97
Q3
1.37
Median
0.54
Q1
0.15
Min
0.00

For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

IBKR vs. MMC: A comparison of their Current Ratio (MRQ) against their respective Capital Markets and Insurance industry benchmarks.

Debt-to-Equity Ratio (MRQ)

IBKR

4.40

Capital Markets Industry

Max
6.52
Q3
2.79
Median
0.96
Q1
0.28
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

MMC

1.25

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.23
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

IBKR vs. MMC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Capital Markets and Insurance industry benchmarks.

Interest Coverage Ratio (TTM)

IBKR

--

Capital Markets Industry

Max
107.59
Q3
48.41
Median
10.85
Q1
4.56
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

MMC

10.06

Insurance Industry

Max
43.68
Q3
21.45
Median
9.67
Q1
3.55
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

IBKR vs. MMC: A comparison of their Interest Coverage Ratio (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Financial Strength at a Glance

SymbolIBKRMMC
Current Ratio (MRQ)0.961.20
Quick Ratio (MRQ)0.961.20
Debt-to-Equity Ratio (MRQ)4.401.25
Interest Coverage Ratio (TTM)--10.06

Growth

Revenue Growth

IBKR vs. MMC: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

IBKR vs. MMC: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

IBKR

0.10%

Capital Markets Industry

Max
9.02%
Q3
4.54%
Median
2.55%
Q1
1.27%
Min
0.00%

IBKR’s Dividend Yield of 0.10% is in the lower quartile for the Capital Markets industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

MMC

1.63%

Insurance Industry

Max
9.80%
Q3
5.18%
Median
3.58%
Q1
2.07%
Min
0.00%

MMC’s Dividend Yield of 1.63% is in the lower quartile for the Insurance industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

IBKR vs. MMC: A comparison of their Dividend Yield (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Dividend Payout Ratio (TTM)

IBKR

13.84%

Capital Markets Industry

Max
199.38%
Q3
99.28%
Median
60.67%
Q1
32.00%
Min
0.00%

IBKR’s Dividend Payout Ratio of 13.84% is in the lower quartile for the Capital Markets industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

MMC

39.18%

Insurance Industry

Max
169.40%
Q3
85.57%
Median
53.26%
Q1
23.68%
Min
0.00%

MMC’s Dividend Payout Ratio of 39.18% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

IBKR vs. MMC: A comparison of their Dividend Payout Ratio (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Dividend at a Glance

SymbolIBKRMMC
Dividend Yield (TTM)0.10%1.63%
Dividend Payout Ratio (TTM)13.84%39.18%

Valuation

Price-to-Earnings Ratio (TTM)

IBKR

140.09

Capital Markets Industry

Max
51.69
Q3
29.42
Median
17.58
Q1
12.55
Min
5.59

At 140.09, IBKR’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Capital Markets industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

MMC

24.03

Insurance Industry

Max
30.75
Q3
18.11
Median
12.67
Q1
9.66
Min
2.87

A P/E Ratio of 24.03 places MMC in the upper quartile for the Insurance industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

IBKR vs. MMC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Price-to-Sales Ratio (TTM)

IBKR

12.00

Capital Markets Industry

Max
14.65
Q3
7.29
Median
4.53
Q1
2.26
Min
0.04

IBKR’s P/S Ratio of 12.00 is in the upper echelon for the Capital Markets industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

MMC

3.84

Insurance Industry

Max
3.41
Q3
1.88
Median
1.22
Q1
0.80
Min
0.23

With a P/S Ratio of 3.84, MMC trades at a valuation that eclipses even the highest in the Insurance industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

IBKR vs. MMC: A comparison of their Price-to-Sales Ratio (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Price-to-Book Ratio (MRQ)

IBKR

19.41

Capital Markets Industry

Max
10.83
Q3
5.12
Median
2.66
Q1
1.19
Min
0.37

At 19.41, IBKR’s P/B Ratio is at an extreme premium to the Capital Markets 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

6.83

Insurance Industry

Max
4.57
Q3
2.56
Median
1.88
Q1
1.20
Min
0.17

At 6.83, MMC’s P/B Ratio is at an extreme premium to the Insurance 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.

IBKR vs. MMC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Capital Markets and Insurance industry benchmarks.

Valuation at a Glance

SymbolIBKRMMC
Price-to-Earnings Ratio (TTM)140.0924.03
Price-to-Sales Ratio (TTM)12.003.84
Price-to-Book Ratio (MRQ)19.416.83
Price-to-Free Cash Flow Ratio (TTM)7.7818.61