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

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
AON $10.77 billion $1.13 billion 20.38
AON Competitors $13.74 billion $1.13 billion 34.14

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 Ratings

This is a breakdown of recent ratings 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 184 676 765 39 2.40

AON presently has a consensus price target of $170.44, suggesting a potential upside of 2.49%. As a group, “Insurance agents, brokers, & service” companies have a potential upside of 9.61%. Given AON’s peers higher probable upside, analysts clearly believe AON has less favorable growth aspects than its peers.

Risk and Volatility

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.

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% 18.06% 9.00%

Insider and Institutional Ownership

84.1% of AON shares are owned by institutional investors. Comparatively, 59.6% of shares of all “Insurance agents, brokers, & service” companies are owned by institutional investors. 0.4% of AON shares are owned by company insiders. Comparatively, 20.3% of shares of all “Insurance agents, brokers, & service” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

AON pays an annual dividend of $1.60 per share and has a dividend yield of 1.0%. 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 31.8% of their earnings in the form of a dividend. AON has increased its dividend for 7 consecutive years.

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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