Marsh (MRSH) vs Willis Towers Watson Public Limited Company (WTW)

Marsh and Willis Towers Watson Public Limited Company are both Insurance Brokers companies. Marsh is the larger, with a market value of $81.1B against $27.3B — 3.0× the size. Willis Towers Watson Public Limited Company trades at the lower P/E: 18.0× against 20.8×. Marsh grew revenue faster over the last twelve months: 8.33% against 3.00%. Willis Towers Watson Public Limited Company has the higher net margin (15.5% vs 14.2%) and the lower return on invested capital (11.1% vs 18.5%). Both pay a dividend; Marsh yields more (1.52% vs 1.28%). Across the 22 metrics below, Marsh leads on 12 and Willis Towers Watson Public Limited Company on 10.

Valuation

Metric MRSH WTW Insurance Brokers median
P/E 20.82 18.00 25.35
P/S 2.94 2.74 2.10
P/B 5.32 3.56 2.81
Price to free cash flow 17.23 35.57 18.44
EV/EBITDA 12.54 12.19 12.36
EV/Sales 3.12 3.22 3.00
Earnings yield 4.80% 5.55% 2.64%
Free cash flow yield 5.80% 2.81% 2.30%

Profitability

Metric MRSH WTW Insurance Brokers median
Gross margin 100.00% 100.00% 42.95%
Operating margin 21.62% 22.23% 15.37%
Net margin 14.24% 15.49% 8.77%
Free cash flow margin 17.06% 16.72% 3.89%
Return on equity 25.34% 19.62% 0.00%
Return on assets 6.73% 5.30% 2.23%
Return on invested capital 18.49% 11.08% 5.27%

Growth

Metric MRSH WTW Insurance Brokers median
Revenue growth (TTM) 8.33% 3.00% 7.09%
EPS growth (last fiscal year) 3.06% 1,793.75% —
Revenue growth, 5-year CAGR 9.39% 2.42% 9.30%
Net income growth, 5-year CAGR 15.59% 10.01% 0.00%

Health

Metric MRSH WTW Insurance Brokers median
Debt to equity 1.22 0.84 0.19
Current ratio 1.14 1.68 1.55
Net debt to EBITDA 0.58 1.20 0.89

Dividend

Metric MRSH WTW Insurance Brokers median
Dividend yield 1.52% 1.28% 1.36%
Payout ratio 0.36 0.34 0.00

Size

Metric MRSH WTW Insurance Brokers median
Market cap 81.09b 27.27b 1.44b

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