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

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

Company Profile

SymbolMMCRY
Company NameMarsh & McLennan Companies, Inc.Royal Bank of Canada
CountryUnited StatesCanada
GICS SectorFinancialsFinancials
GICS IndustryInsuranceBanks
Market Capitalization103.84 billion USD193.37 billion USD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973October 16, 1995
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MMC and RY 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.

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

Historical Performance at a Glance

SymbolMMCRY
5-Day Price Return2.04%1.07%
13-Week Price Return-8.90%7.50%
26-Week Price Return-8.61%11.77%
52-Week Price Return-5.36%22.93%
Month-to-Date Return6.03%6.32%
Year-to-Date Return-0.56%9.06%
10-Day Avg. Volume2.11M2.86M
3-Month Avg. Volume2.33M4.46M
3-Month Volatility16.42%12.15%
Beta0.830.04

Profitability

Return on Equity (TTM)

MMC

29.03%

Insurance Industry

Max
29.03%
Q3
18.11%
Median
13.90%
Q1
10.42%
Min
-0.64%

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.

RY

14.09%

Banks Industry

Max
26.37%
Q3
15.92%
Median
12.25%
Q1
8.69%
Min
0.15%

RY’s Return on Equity of 14.09% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

MMC

16.00%

Insurance Industry

Max
26.78%
Q3
14.06%
Median
9.15%
Q1
5.48%
Min
-7.05%

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.

RY

26.26%

Banks Industry

Max
54.20%
Q3
35.70%
Median
28.97%
Q1
22.53%
Min
6.98%

RY’s Net Profit Margin of 26.26% is aligned with the median group of its peers in the Banks industry. This indicates its ability to convert revenue into profit is typical for the sector.

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

Operating Profit Margin (TTM)

MMC

23.58%

Insurance Industry

Max
35.49%
Q3
19.49%
Median
14.35%
Q1
8.53%
Min
-5.25%

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

RY

34.59%

Banks Industry

Max
63.35%
Q3
44.59%
Median
37.24%
Q1
28.25%
Min
13.37%

RY’s Operating Profit Margin of 34.59% is around the midpoint for the Banks industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolMMCRY
Return on Equity (TTM)29.03%14.09%
Return on Assets (TTM)7.44%0.84%
Net Profit Margin (TTM)16.00%26.26%
Operating Profit Margin (TTM)23.58%34.59%
Gross Profit Margin (TTM)----

Financial Strength

Current Ratio (MRQ)

MMC

1.20

Insurance Industry

Max
2.97
Q3
1.33
Median
0.55
Q1
0.15
Min
0.00

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

RY

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

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

MMC vs. RY: A comparison of their Current Ratio (MRQ) against their respective Insurance and Banks industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MMC

1.25

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.22
Min
0.00

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

RY

2.58

Banks Industry

Max
4.75
Q3
2.62
Median
1.02
Q1
0.39
Min
0.00

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

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

Interest Coverage Ratio (TTM)

MMC

10.06

Insurance Industry

Max
43.68
Q3
20.84
Median
9.56
Q1
3.34
Min
-5.73

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

RY

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

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

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

Financial Strength at a Glance

SymbolMMCRY
Current Ratio (MRQ)1.20--
Quick Ratio (MRQ)1.20--
Debt-to-Equity Ratio (MRQ)1.252.58
Interest Coverage Ratio (TTM)10.06--

Growth

Revenue Growth

MMC vs. RY: 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

MMC vs. RY: 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)

MMC

1.56%

Insurance Industry

Max
8.23%
Q3
4.54%
Median
3.42%
Q1
1.97%
Min
0.00%

MMC’s Dividend Yield of 1.56% 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.

RY

3.17%

Banks Industry

Max
10.27%
Q3
5.83%
Median
3.81%
Q1
2.50%
Min
0.00%

RY’s Dividend Yield of 3.17% is consistent with its peers in the Banks industry, providing a dividend return that is standard for its sector.

MMC vs. RY: A comparison of their Dividend Yield (TTM) against their respective Insurance and Banks industry benchmarks.

Dividend Payout Ratio (TTM)

MMC

39.18%

Insurance Industry

Max
168.02%
Q3
85.57%
Median
50.71%
Q1
22.04%
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.

RY

46.36%

Banks Industry

Max
147.07%
Q3
80.55%
Median
54.40%
Q1
35.71%
Min
0.00%

RY’s Dividend Payout Ratio of 46.36% is within the typical range for the Banks industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolMMCRY
Dividend Yield (TTM)1.56%3.17%
Dividend Payout Ratio (TTM)39.18%46.36%

Valuation

Price-to-Earnings Ratio (TTM)

MMC

25.14

Insurance Industry

Max
28.91
Q3
17.76
Median
13.63
Q1
10.02
Min
2.89

A P/E Ratio of 25.14 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.

RY

14.63

Banks Industry

Max
20.05
Q3
12.65
Median
10.21
Q1
7.54
Min
2.74

A P/E Ratio of 14.63 places RY in the upper quartile for the Banks industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

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

Price-to-Sales Ratio (TTM)

MMC

4.02

Insurance Industry

Max
3.72
Q3
1.98
Median
1.23
Q1
0.81
Min
0.23

With a P/S Ratio of 4.02, 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.

RY

3.00

Banks Industry

Max
5.06
Q3
2.98
Median
2.24
Q1
1.59
Min
0.45

The P/S Ratio is often not a primary valuation tool in the Banks industry.

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

Price-to-Book Ratio (MRQ)

MMC

6.83

Insurance Industry

Max
4.37
Q3
2.48
Median
1.68
Q1
1.19
Min
0.19

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.

RY

1.76

Banks Industry

Max
2.18
Q3
1.36
Median
1.09
Q1
0.81
Min
0.20

RY’s P/B Ratio of 1.76 is in the upper tier for the Banks industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

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

Valuation at a Glance

SymbolMMCRY
Price-to-Earnings Ratio (TTM)25.1414.63
Price-to-Sales Ratio (TTM)4.023.00
Price-to-Book Ratio (MRQ)6.831.76
Price-to-Free Cash Flow Ratio (TTM)19.463.38