AON vs. AJG, MMC, BRO, WTW, ERIE, ING, PNC, USB, APO, and BNS
Should you be buying AON stock or one of its competitors? The main competitors of AON include Arthur J. Gallagher & Co. (AJG), Marsh & McLennan Companies (MMC), Brown & Brown (BRO), Willis Towers Watson Public (WTW), Erie Indemnity (ERIE), ING Groep (ING), The PNC Financial Services Group (PNC), U.S. Bancorp (USB), Apollo Global Management (APO), and Bank of Nova Scotia (BNS). These companies are all part of the "finance" sector.
AON (NYSE:AON) and Arthur J. Gallagher & Co. (NYSE:AJG) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, media sentiment, institutional ownership, risk, dividends, community ranking, analyst recommendations, earnings and valuation.
Arthur J. Gallagher & Co. received 3 more outperform votes than AON when rated by MarketBeat users. Likewise, 60.04% of users gave Arthur J. Gallagher & Co. an outperform vote while only 56.57% of users gave AON an outperform vote.
In the previous week, AON had 13 more articles in the media than Arthur J. Gallagher & Co.. MarketBeat recorded 40 mentions for AON and 27 mentions for Arthur J. Gallagher & Co.. Arthur J. Gallagher & Co.'s average media sentiment score of 0.73 beat AON's score of 0.24 indicating that Arthur J. Gallagher & Co. is being referred to more favorably in the news media.
AON currently has a consensus price target of $334.69, suggesting a potential upside of 17.42%. Arthur J. Gallagher & Co. has a consensus price target of $255.23, suggesting a potential upside of 9.02%. Given AON's higher possible upside, research analysts clearly believe AON is more favorable than Arthur J. Gallagher & Co..
86.1% of AON shares are owned by institutional investors. Comparatively, 85.5% of Arthur J. Gallagher & Co. shares are owned by institutional investors. 1.2% of AON shares are owned by company insiders. Comparatively, 1.6% of Arthur J. Gallagher & Co. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
AON has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Arthur J. Gallagher & Co. has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.
AON pays an annual dividend of $2.70 per share and has a dividend yield of 0.9%. Arthur J. Gallagher & Co. pays an annual dividend of $2.40 per share and has a dividend yield of 1.0%. AON pays out 21.2% of its earnings in the form of a dividend. Arthur J. Gallagher & Co. pays out 48.6% 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 has a net margin of 19.17% compared to Arthur J. Gallagher & Co.'s net margin of 10.27%. Arthur J. Gallagher & Co.'s return on equity of 19.27% beat AON's return on equity.
AON has higher revenue and earnings than Arthur J. Gallagher & Co.. AON is trading at a lower price-to-earnings ratio than Arthur J. Gallagher & Co., indicating that it is currently the more affordable of the two stocks.
Summary
AON and Arthur J. Gallagher & Co. tied by winning 10 of the 20 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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