Willis Towers Watson (WLTW) versus Ashmore Group (AJMPF) Critical Comparison

Willis Towers Watson (NASDAQ: WLTW) and Ashmore Group (OTCMKTS:AJMPF) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Analyst Recommendations

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This is a summary of recent ratings for Willis Towers Watson and Ashmore Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Willis Towers Watson 2 4 11 0 2.53
Ashmore Group 1 2 1 0 2.00

Willis Towers Watson presently has a consensus target price of $170.64, suggesting a potential upside of 11.28%. Given Willis Towers Watson’s stronger consensus rating and higher probable upside, research analysts plainly believe Willis Towers Watson is more favorable than Ashmore Group.

Volatility and Risk

Willis Towers Watson has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Ashmore Group has a beta of 2.48, meaning that its stock price is 148% more volatile than the S&P 500.

Profitability

This table compares Willis Towers Watson and Ashmore Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Willis Towers Watson 6.93% 11.25% 3.56%
Ashmore Group N/A N/A N/A

Dividends

Willis Towers Watson pays an annual dividend of $2.40 per share and has a dividend yield of 1.6%. Ashmore Group does not pay a dividend. Willis Towers Watson pays out 28.2% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Willis Towers Watson and Ashmore Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Willis Towers Watson $8.20 billion 2.48 $568.00 million $8.51 18.02
Ashmore Group N/A N/A N/A N/A N/A

Willis Towers Watson has higher revenue and earnings than Ashmore Group.

Institutional & Insider Ownership

93.6% of Willis Towers Watson shares are owned by institutional investors. Comparatively, 0.1% of Ashmore Group shares are owned by institutional investors. 0.5% of Willis Towers Watson shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Willis Towers Watson beats Ashmore Group on 10 of the 12 factors compared between the two stocks.

Willis Towers Watson Company Profile

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. Its Human Capital and Benefits segment provides actuarial support, plan design, and administrative services for traditional pension and retirement savings plans; plan management consulting, broking, and administration services for health and group benefit programs; and benefits outsourcing services. This segment also offers advice, data, software, and products to address clients' total rewards and talent issues. The company's Corporate Risk and Broking segment provides risk advice, insurance brokerage, and consulting services in the areas of property and casualty, financial lines, transport, and facultative. Its Investment, Risk and Reinsurance segment offers capital markets-based products to insurance and reinsurance companies; software and technology, risk and capital management, products and pricing, financial and regulatory reporting, financial and capital modeling, merger and acquisition, outsourcing, and business management services; investment advice and solutions to pension funds and institutional investors; wholesale insurance broking services to retail brokers; and portfolio and underwriting, and capital markets and advisory services. The company's Benefit Delivery and Administration segment provides primary medical and ancillary benefit exchange, and outsourcing services to active employees and retirees across the group and individual markets. This segment delivers health savings and flexible spending accounts, health reimbursement arrangements, and other consumer-directed accounts. The company was formerly known as Willis Group Holdings Public Limited Company and changed its name to Willis Towers Watson Public Limited Company in January 2016. Willis Towers Watson Public Limited Company was founded in 1828 and is based in London, the United Kingdom.

Ashmore Group Company Profile

Ashmore Group plc is a publicly owned investment manager. The firm primarily provides its services to retail and institutional clients. It manages separate client-focused equity and fixed income portfolios. The firm also launches and manages equity and fixed income mutual funds for its clients. It invests in the public equity and fixed income markets in emerging markets across the globe. Ashmore Group Plc was founded in 1992 and is based in London, United Kingdom.

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