AON vs. MMC, AJG, BRO, EHTH, WTW, ERIE, RYAN, EQH, ACT, and CRVL
Should you be buying AON stock or one of its competitors? The main competitors of AON include Marsh & McLennan Companies (MMC), Arthur J. Gallagher & Co. (AJG), Brown & Brown (BRO), eHealth (EHTH), Willis Towers Watson Public (WTW), Erie Indemnity (ERIE), Ryan Specialty (RYAN), Equitable (EQH), Enact (ACT), and CorVel (CRVL). These companies are all part of the "insurance agents, brokers, & service" industry.
AON (NYSE:AON) and Marsh & McLennan Companies (NYSE:MMC) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their community ranking, dividends, analyst recommendations, risk, valuation, media sentiment, institutional ownership, earnings and profitability.
Marsh & McLennan Companies has higher revenue and earnings than AON. AON is trading at a lower price-to-earnings ratio than Marsh & McLennan Companies, indicating that it is currently the more affordable of the two stocks.
In the previous week, AON had 3 more articles in the media than Marsh & McLennan Companies. MarketBeat recorded 11 mentions for AON and 8 mentions for Marsh & McLennan Companies. Marsh & McLennan Companies' average media sentiment score of 1.18 beat AON's score of 0.36 indicating that Marsh & McLennan Companies is being referred to more favorably in the news media.
AON has a net margin of 19.04% compared to Marsh & McLennan Companies' net margin of 16.84%. Marsh & McLennan Companies' return on equity of 34.14% beat AON's return on equity.
AON received 36 more outperform votes than Marsh & McLennan Companies when rated by MarketBeat users. However, 62.83% of users gave Marsh & McLennan Companies an outperform vote while only 56.16% of users gave AON an outperform vote.
AON has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
AON pays an annual dividend of $2.70 per share and has a dividend yield of 1.0%. Marsh & McLennan Companies pays an annual dividend of $2.84 per share and has a dividend yield of 1.4%. AON pays out 21.2% of its earnings in the form of a dividend. Marsh & McLennan Companies pays out 36.0% 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.
AON presently has a consensus target price of $321.86, suggesting a potential upside of 14.28%. Marsh & McLennan Companies has a consensus target price of $210.27, suggesting a potential upside of 1.29%. Given AON's higher possible upside, research analysts clearly believe AON is more favorable than Marsh & McLennan Companies.
86.1% of AON shares are held by institutional investors. Comparatively, 88.0% of Marsh & McLennan Companies shares are held by institutional investors. 1.2% of AON shares are held by insiders. Comparatively, 0.3% of Marsh & McLennan Companies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Marsh & McLennan Companies beats AON on 11 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AON and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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