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

Dividends

AON pays an annual dividend of $1.60 per share and has a dividend yield of 0.9%. 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 32.3% of their earnings in the form of a dividend. AON has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for AON and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AON 0 7 5 0 2.42
AON Competitors 189 688 775 40 2.39

AON currently has a consensus price target of $170.67, suggesting a potential downside of 3.01%. As a group, “Insurance agents, brokers, & service” companies have a potential upside of 10.30%. Given AON’s rivals higher possible upside, analysts clearly believe AON has less favorable growth aspects than its rivals.

Volatility and Risk

AON has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, AON’s rivals have a beta of 0.85, suggesting that their average stock price is 15% less volatile than the S&P 500.

Insider & Institutional Ownership

84.9% of AON shares are owned by institutional investors. Comparatively, 64.0% 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, 23.2% of shares of all “Insurance agents, brokers, & service” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares AON and its rivals’ 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% 18.05% 9.00%

Valuation and Earnings

This table compares AON and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AON $10.77 billion $1.13 billion 21.56
AON Competitors $13.74 billion $1.05 billion 35.26

AON’s rivals have higher revenue, but lower earnings than AON. AON is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

AON rivals beat AON on 8 of the 15 factors compared.

AON Company Profile

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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