Analyzing Aon PLC (AON) & Patriot National (PN)
Aon PLC (NYSE: AON) and Patriot National (NYSE:PN) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Insider and Institutional Ownership
86.0% of Aon PLC shares are owned by institutional investors. Comparatively, 16.2% of Patriot National shares are owned by institutional investors. 1.0% of Aon PLC shares are owned by insiders. Comparatively, 59.9% of Patriot National shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Aon PLC and Patriot National’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Aon PLC||$11.71 billion||3.02||$2.47 billion||$5.11||26.42|
|Patriot National||$233.03 million||0.34||$31.71 million||($0.02)||-125.00|
Aon PLC has higher revenue and earnings than Patriot National. Patriot National is trading at a lower price-to-earnings ratio than Aon PLC, indicating that it is currently the more affordable of the two stocks.
Aon PLC pays an annual dividend of $1.44 per share and has a dividend yield of 1.1%. Patriot National does not pay a dividend. Aon PLC pays out 28.2% of its earnings in the form of a dividend. Aon PLC has raised its dividend for 5 consecutive years.
Risk and Volatility
Aon PLC has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Patriot National has a beta of 2.72, meaning that its stock price is 172% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Aon PLC and Patriot National, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aon PLC presently has a consensus target price of $123.78, indicating a potential downside of 8.32%. Patriot National has a consensus target price of $7.75, indicating a potential upside of 210.00%. Given Patriot National’s higher possible upside, analysts plainly believe Patriot National is more favorable than Aon PLC.
This table compares Aon PLC and Patriot National’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Aon PLC beats Patriot National on 13 of the 17 factors compared between the two stocks.
Aon PLC Company Profile
Aon plc (Aon) is a global provider of risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing, delivering distinctive client value via risk management and workforce productivity solutions. The Company operates in two segments: Risk Solutions and Human Resource (HR) Solutions. On April 2, 2012, the Company completed the reorganization of the corporate structure of the group of companies controlled by its predecessor, Aon Corporation, as holding company of the Aon group, pursuant to which Aon Corporation merged with one of its indirect, wholly owned subsidiaries and Aon plc became the parent company of the Aon group. In July 2012, ABN Amro Bank NV sold its insurance unit to Aon.
Patriot National Company Profile
Patriot National, Inc. is an independent national provider of technology-enabled outsourcing solutions that help insurance carriers, employers and other clients mitigate risk and comply with complex regulations. It offers a range of end-to-end insurance related and specialty services. The Company principally offers approximately two types of services: front-end services, such as brokerage, underwriting and policyholder services, and back-end services, such as claims adjudication and administration. It also offers specialty services, including technology outsourcing and other information technology (IT) services, as well as employment pre-screening and background checks. The Company’s brokerage and policyholder services include general agency services and specialty underwriting and policyholder services provided to its insurance carrier clients. The Company’s claims administration services relate to the administration and resolution of workers’ compensation claims.
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