AON (NYSE:AON) & M�nchener R�ckversicherungs-Gesellschaft (OTCMKTS:MURGY) Head to Head Comparison

M�nchener R�ckversicherungs-Gesellschaft (OTCMKTS:MURGY) and AON (NYSE:AON) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares M�nchener R�ckversicherungs-Gesellschaft and AON’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
M�nchener R�ckversicherungs-Gesellschaft	11.49%	21.19%	2.53%
AON	22.27%	42.13%	7.57%

Analyst Recommendations

This is a summary of recent recommendations for M�nchener R�ckversicherungs-Gesellschaft and AON, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
M�nchener R�ckversicherungs-Gesellschaft	0	2	1	0	2.33
AON	0	5	12	0	2.71

AON has a consensus target price of $412.62, suggesting a potential upside of 15.93%. Given AON’s stronger consensus rating and higher probable upside, analysts clearly believe AON is more favorable than M�nchener R�ckversicherungs-Gesellschaft.

Dividends

M�nchener R�ckversicherungs-Gesellschaft pays an annual dividend of $0.34 per share and has a dividend yield of 2.8%. AON pays an annual dividend of $3.28 per share and has a dividend yield of 0.9%. M�nchener R�ckversicherungs-Gesellschaft pays out 13.5% of its earnings in the form of a dividend. AON pays out 18.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. M�nchener R�ckversicherungs-Gesellschaft is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

M�nchener R�ckversicherungs-Gesellschaft has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, AON has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Earnings and Valuation

This table compares M�nchener R�ckversicherungs-Gesellschaft and AON”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M�nchener R�ckversicherungs-Gesellschaft	$68.33 billion	1.09	$6.92 billion	$2.51	4.76
AON	$17.18 billion	4.39	$3.69 billion	$18.14	19.62

M�nchener R�ckversicherungs-Gesellschaft has higher revenue and earnings than AON. M�nchener R�ckversicherungs-Gesellschaft is trading at a lower price-to-earnings ratio than AON, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.2% of M�nchener R�ckversicherungs-Gesellschaft shares are owned by institutional investors. Comparatively, 86.1% of AON shares are owned by institutional investors. 1.0% of AON shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

AON beats M�nchener R�ckversicherungs-Gesellschaft on 12 of the 16 factors compared between the two stocks.

About M�nchener R�ckversicherungs-Gesellschaft

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München engages in the insurance and reinsurance businesses worldwide. It also offers life and health reinsurance solutions, such as digital underwriting and advanced analytics solutions, health insurance management system, financial market risks, financing, portfolio risk management, digitalized investment-linked solution, MIRA digital suite, MIRA POS, MIRApply insured and physician, claims risk adjustment, CLARA plus, data analytics, underwriting and claims, medical research, capital management, and health market. The company also provides property and casualty reinsurance solutions, including agricultural risk, data analytics, infrastructure risk profiler, property insurance, retroactive reinsurance, insurance linked securities, location risk, risk transfer, and cyber, NatCatSERVICE for natural catastrophe loss database, REALYTIX ZERO, IMPROVEX, and cert2go, as well as consulting services for reinsurance, business advisory, portfolio performance and management, claims management, commercial motor, telematics, and electric vehicles. In addition, the company provides solutions for industry clients, such as IoT cover, earnings quality insurance protection, captive insurance and risk transfer, liability, weather risks, space and satellite insurance, solar and biomass insurance, wind insurance, digital asset, mining risks cover, construction projects covers and services, aviation insurance, power and utilities, industrial cyber insurance, risk suite, location risk intelligence, digital risks, PV warranty insurance, parametric, Insure AI, e-mobility, circular economy, liquidation damage cover, and natural catastrophes solutions. Further, it offers life, property-casualty, health, legal protection, and travel insurance products under the ERGO brand name; and insurance solutions for agriculture, captive, epidemic, cyber, and renewable energy. The company was founded in 1880 and is based in Munich, Germany.

About AON

Aon Plc engages in the provision of risk, health, and wealth solutions. It focuses on risk capital including claim management, reinsurance, risk analysis, management, retention, and transfer; and human capital involving analytics, health and benefits, investments, pensions and retirement, talent and rewards, and workplace wellbeing. The company was founded in 1982 and is headquartered in Dublin, Ireland.