AON vs. AJG, MMC, BRO, WTW, ERIE, PNC, APO, ING, USB, and BBVA
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), The PNC Financial Services Group (PNC), Apollo Global Management (APO), ING Groep (ING), U.S. Bancorp (USB), and Banco Bilbao Vizcaya Argentaria (BBVA). 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 stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, media sentiment, earnings, community ranking, risk, institutional ownership and valuation.
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.
In the previous week, AON had 6 more articles in the media than Arthur J. Gallagher & Co.. MarketBeat recorded 18 mentions for AON and 12 mentions for Arthur J. Gallagher & Co.. Arthur J. Gallagher & Co.'s average media sentiment score of 1.38 beat AON's score of 0.58 indicating that Arthur J. Gallagher & Co. is being referred to more favorably in the news media.
AON pays an annual dividend of $2.70 per share and has a dividend yield of 1.0%. 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 beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Arthur J. Gallagher & Co. has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.
AON currently has a consensus price target of $329.69, indicating a potential upside of 16.17%. Arthur J. Gallagher & Co. has a consensus price target of $255.31, indicating a potential upside of 4.17%. Given AON's higher probable upside, research analysts plainly believe AON is more favorable than Arthur J. Gallagher & Co..
Arthur J. Gallagher & Co. received 3 more outperform votes than AON when rated by MarketBeat users. Likewise, 59.98% of users gave Arthur J. Gallagher & Co. an outperform vote while only 56.34% of users gave AON an outperform vote.
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 stock is poised for long-term growth.
AON has a net margin of 19.04% compared to Arthur J. Gallagher & Co.'s net margin of 10.27%. Arthur J. Gallagher & Co.'s return on equity of 18.94% beat AON's return on equity.
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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