AON (NYSE:AON) & Its Competitors Head to Head Comparison

AON (NYSE: AON) is one of 19 publicly-traded companies in the “Insurance agents, brokers, & service” industry, but how does it compare to its peers? We will compare AON to related companies based on the strength of its earnings, risk, profitability, institutional ownership, dividends, valuation and analyst recommendations.

Volatility & Risk

AON has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, AON’s peers have a beta of 0.85, meaning that their average share price is 15% less volatile than the S&P 500.

Institutional and Insider Ownership

84.9% of AON shares are held by institutional investors. Comparatively, 64.0% of shares of all “Insurance agents, brokers, & service” companies are held by institutional investors. 0.4% of AON shares are held by insiders. Comparatively, 23.2% of shares of all “Insurance agents, brokers, & service” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

AON pays an annual dividend of $1.60 per share and has a dividend yield of 0.9%. AON pays out 19.6% of its earnings in the form of a dividend. As a group, “Insurance agents, brokers, & service” companies pay a dividend yield of 1.6% and pay out 32.3% of their earnings in the form of a dividend. AON has raised its dividend for 7 consecutive years.

Valuation & Earnings

This table compares AON and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AON $10.77 billion $1.13 billion 21.56
AON Competitors $13.74 billion $1.05 billion 35.26

AON’s peers have higher revenue, but lower earnings than AON. AON is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for AON and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AON 0 7 5 0 2.42
AON Competitors 189 688 775 40 2.39

AON presently has a consensus target price of $170.67, suggesting a potential downside of 3.01%. As a group, “Insurance agents, brokers, & service” companies have a potential upside of 10.30%. Given AON’s peers higher probable upside, analysts plainly believe AON has less favorable growth aspects than its peers.

Profitability

This table compares AON and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AON 10.53% 43.49% 7.53%
AON Competitors 7.10% 18.05% 9.00%

Summary

AON peers beat AON on 8 of the 15 factors compared.

About AON

Aon plc, a professional services firm, provides advisory and solutions based on risk, retirement, and health to clients. It offers commercial risk solutions, including retail brokerage, cyber, and global risk consulting solutions, as well as acts as a captive insurance provider; and health solutions, such as health and benefits brokerages, and health care exchanges. The company also provides reinsurance solutions, such as treaty and facultative reinsurance, as well as investment banking services, including mergers and acquisition, capital raising, strategic advisory, restructuring, and recapitalization services; insurance-linked securities; and corporate finance advisory services, capital markets solutions, and risk management products. In addition, it develops, markets, and administers customized insurance programs and specialty market solutions for organizations, and their members or affiliates; operates the Global Risk Insight Platform, which provides data, analytics, engagement, and consulting services; and offers ReView that provides advisory, analysis, and benchmarking services to help reinsurers. Aon plc was founded in 1919 and is headquartered in London, the United Kingdom.

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