MMC vs. STT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MMC and STT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MMC | STT |
|---|---|---|
| Company Name | Marsh & McLennan Companies, Inc. | State Street Corporation |
| Country | United States | United States |
| GICS Sector | Financials | Financials |
| GICS Industry | Insurance | Capital Markets |
| Market Capitalization | 102.92 billion USD | 31.63 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | February 21, 1973 | March 17, 1980 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MMC and STT 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.
Historical Performance at a Glance
| Symbol | MMC | STT |
|---|---|---|
| 5-Day Price Return | 2.97% | 1.53% |
| 13-Week Price Return | -7.79% | 16.15% |
| 26-Week Price Return | -7.37% | 11.96% |
| 52-Week Price Return | -3.68% | 43.82% |
| Month-to-Date Return | 5.10% | -0.22% |
| Year-to-Date Return | -1.44% | 13.60% |
| 10-Day Avg. Volume | 2.76M | 1.56M |
| 3-Month Avg. Volume | 2.45M | 2.12M |
| 3-Month Volatility | 17.20% | 24.02% |
| Beta | 0.83 | 1.51 |
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.
STT
10.85%
Capital Markets Industry
- Max
- 38.97%
- Q3
- 21.61%
- Median
- 13.77%
- Q1
- 8.31%
- Min
- -4.25%
STT’s Return on Equity of 10.85% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
STT
20.50%
Capital Markets Industry
- Max
- 66.67%
- Q3
- 35.11%
- Median
- 23.49%
- Q1
- 13.63%
- Min
- -15.18%
STT’s Net Profit Margin of 20.50% is aligned with the median group of its peers in the Capital Markets industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
STT
24.96%
Capital Markets Industry
- Max
- 86.40%
- Q3
- 46.46%
- Median
- 32.80%
- Q1
- 18.32%
- Min
- -21.87%
STT’s Operating Profit Margin of 24.96% is around the midpoint for the Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | MMC | STT |
|---|---|---|
| Return on Equity (TTM) | 29.03% | 10.85% |
| Return on Assets (TTM) | 7.44% | 0.79% |
| Net Profit Margin (TTM) | 16.00% | 20.50% |
| Operating Profit Margin (TTM) | 23.58% | 24.96% |
| 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.
STT
--
Capital Markets Industry
- Max
- 3.76
- Q3
- 1.89
- Median
- 1.01
- Q1
- 0.54
- Min
- -0.41
For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
STT
1.40
Capital Markets Industry
- Max
- 6.62
- Q3
- 2.84
- Median
- 1.02
- Q1
- 0.32
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.
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.
STT
--
Capital Markets Industry
- Max
- 126.03
- Q3
- 60.98
- Median
- 11.77
- Q1
- 4.95
- Min
- -36.26
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.
Financial Strength at a Glance
| Symbol | MMC | STT |
|---|---|---|
| Current Ratio (MRQ) | 1.20 | -- |
| Quick Ratio (MRQ) | 1.20 | -- |
| Debt-to-Equity Ratio (MRQ) | 1.25 | 1.40 |
| Interest Coverage Ratio (TTM) | 10.06 | -- |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MMC
1.58%
Insurance Industry
- Max
- 8.23%
- Q3
- 4.54%
- Median
- 3.42%
- Q1
- 1.97%
- Min
- 0.00%
MMC’s Dividend Yield of 1.58% 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.
STT
3.38%
Capital Markets Industry
- Max
- 10.26%
- Q3
- 4.86%
- Median
- 2.78%
- Q1
- 1.22%
- Min
- 0.00%
STT’s Dividend Yield of 3.38% is consistent with its peers in the Capital Markets industry, providing a dividend return that is standard for its sector.
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.
STT
37.74%
Capital Markets Industry
- Max
- 200.72%
- Q3
- 101.92%
- Median
- 57.97%
- Q1
- 32.36%
- Min
- 0.00%
STT’s Dividend Payout Ratio of 37.74% is within the typical range for the Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | MMC | STT |
|---|---|---|
| Dividend Yield (TTM) | 1.58% | 3.38% |
| Dividend Payout Ratio (TTM) | 39.18% | 37.74% |
Valuation
Price-to-Earnings Ratio (TTM)
MMC
24.83
Insurance Industry
- Max
- 28.91
- Q3
- 17.76
- Median
- 13.63
- Q1
- 10.02
- Min
- 2.89
A P/E Ratio of 24.83 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.
STT
11.18
Capital Markets Industry
- Max
- 58.89
- Q3
- 31.00
- Median
- 18.54
- Q1
- 12.09
- Min
- 5.24
In the lower quartile for the Capital Markets industry, STT’s P/E Ratio of 11.18 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
MMC
3.97
Insurance Industry
- Max
- 3.72
- Q3
- 1.98
- Median
- 1.23
- Q1
- 0.81
- Min
- 0.23
With a P/S Ratio of 3.97, 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.
STT
1.80
Capital Markets Industry
- Max
- 14.49
- Q3
- 7.41
- Median
- 4.68
- Q1
- 2.25
- Min
- 0.04
In the lower quartile for the Capital Markets industry, STT’s P/S Ratio of 1.80 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
STT
1.11
Capital Markets Industry
- Max
- 9.48
- Q3
- 4.94
- Median
- 2.42
- Q1
- 1.21
- Min
- 0.38
STT’s P/B Ratio of 1.11 is in the lower quartile for the Capital Markets industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | MMC | STT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 24.83 | 11.18 |
| Price-to-Sales Ratio (TTM) | 3.97 | 1.80 |
| Price-to-Book Ratio (MRQ) | 6.83 | 1.11 |
| Price-to-Free Cash Flow Ratio (TTM) | 19.23 | 6.86 |