AON vs. AJG, BRO, MMC, WTW, ERIE, PNC, ING, ITUB, 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), Brown & Brown (BRO), Marsh & McLennan Companies (MMC), Willis Towers Watson Public (WTW), Erie Indemnity (ERIE), The PNC Financial Services Group (PNC), ING Groep (ING), Itaú Unibanco (ITUB), U.S. Bancorp (USB), and Banco Bilbao Vizcaya Argentaria (BBVA). These companies are all part of the "finance" sector.
Arthur J. Gallagher & Co. (NYSE:AJG) and AON (NYSE:AON) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their community ranking, institutional ownership, dividends, valuation, media sentiment, earnings, risk, analyst recommendations and profitability.
Arthur J. Gallagher & Co. has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, AON has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
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.
85.5% of Arthur J. Gallagher & Co. shares are owned by institutional investors. Comparatively, 86.1% of AON shares are owned by institutional investors. 1.6% of Arthur J. Gallagher & Co. shares are owned by company insiders. Comparatively, 1.2% of AON shares 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.
In the previous week, Arthur J. Gallagher & Co. had 7 more articles in the media than AON. MarketBeat recorded 25 mentions for Arthur J. Gallagher & Co. and 18 mentions for AON. AON's average media sentiment score of 0.68 beat Arthur J. Gallagher & Co.'s score of 0.38 indicating that Arthur J. Gallagher & Co. is being referred to more favorably in the media.
AON has a net margin of 19.04% compared to AON's net margin of 10.27%. AON's return on equity of 18.94% beat Arthur J. Gallagher & Co.'s return on equity.
Arthur J. Gallagher & Co. received 4 more outperform votes than AON when rated by MarketBeat users. Likewise, 59.96% of users gave Arthur J. Gallagher & Co. an outperform vote while only 56.22% of users gave AON an outperform vote.
Arthur J. Gallagher & Co. pays an annual dividend of $2.40 per share and has a dividend yield of 0.9%. AON pays an annual dividend of $2.70 per share and has a dividend yield of 1.0%. Arthur J. Gallagher & Co. pays out 48.6% of its earnings in the form of a dividend. AON pays out 21.2% 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. Arthur J. Gallagher & Co. has increased its dividend for 14 consecutive years and AON has increased its dividend for 13 consecutive years. AON is clearly the better dividend stock, given its higher yield and lower payout ratio.
Arthur J. Gallagher & Co. presently has a consensus target price of $255.71, suggesting a potential downside of 0.12%. AON has a consensus target price of $325.43, suggesting a potential upside of 14.33%. Given Arthur J. Gallagher & Co.'s higher probable upside, analysts plainly believe AON is more favorable than Arthur J. Gallagher & Co..
Summary
Arthur J. Gallagher & Co. beats AON on 11 of the 21 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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