Head-To-Head Comparison: Marsh & McLennan Companies (NYSE:MMC) & XChange TEC.INC (NASDAQ:XHG)

XChange TEC.INC (NASDAQ:XHG) and Marsh & McLennan Companies (NYSE:MMC) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Risk & Volatility

XChange TEC.INC has a beta of -0.78, indicating that its stock price is 178% less volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Profitability

This table compares XChange TEC.INC and Marsh & McLennan Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XChange TEC.INC	N/A	N/A	N/A
Marsh & McLennan Companies	16.60%	32.60%	8.63%

Institutional & Insider Ownership

88.0% of Marsh & McLennan Companies shares are held by institutional investors. 0.6% of XChange TEC.INC shares are held by company insiders. Comparatively, 0.3% of Marsh & McLennan Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for XChange TEC.INC and Marsh & McLennan Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XChange TEC.INC	0	0	0	0	0.00
Marsh & McLennan Companies	2	10	4	0	2.13

Marsh & McLennan Companies has a consensus price target of $230.44, suggesting a potential downside of 0.90%. Given Marsh & McLennan Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Marsh & McLennan Companies is more favorable than XChange TEC.INC.

Earnings and Valuation

This table compares XChange TEC.INC and Marsh & McLennan Companies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XChange TEC.INC	$288.37 million	0.00	-$32.32 million	N/A	N/A
Marsh & McLennan Companies	$24.46 billion	4.67	$4.06 billion	$8.19	28.39

Marsh & McLennan Companies has higher revenue and earnings than XChange TEC.INC.

Summary

Marsh & McLennan Companies beats XChange TEC.INC on 11 of the 12 factors compared between the two stocks.

About XChange TEC.INC

XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.

About Marsh & McLennan Companies

Marsh & McLennan Cos., Inc. is a professional services firm, which engages in offering clients advice and solutions in risk, strategy, and people. It operates through the Risk and Insurance Services, and Consulting segments. The Risk and Insurance Services segment is involved in risk management activities, as well as insurance and reinsurance broking and services. The Consulting segment offers health, wealth, and career solutions and products, and specialized management, strategic, economic, and brand consulting services. The company was founded by Henry W. Marsh and Donald R. McLennan in 1871 and is headquartered in New York, NY.