AON vs. AJG, BRO, MMC, WTW, ERIE, APO, PNC, BBVA, ING, and USB
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), Apollo Global Management (APO), The PNC Financial Services Group (PNC), Banco Bilbao Vizcaya Argentaria (BBVA), ING Groep (ING), and U.S. Bancorp (USB). 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, institutional ownership, earnings, valuation, media sentiment, profitability, analyst recommendations, community ranking and risk.
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.
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.
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 0.9%. 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 presently has a consensus price target of $329.69, indicating a potential upside of 12.73%. Arthur J. Gallagher & Co. has a consensus price target of $255.77, indicating a potential downside of 0.74%. Given AON's higher probable upside, analysts clearly believe AON is more favorable than Arthur J. Gallagher & Co..
86.1% of AON shares are held by institutional investors. Comparatively, 85.5% of Arthur J. Gallagher & Co. shares are held by institutional investors. 1.2% of AON shares are held by insiders. Comparatively, 1.6% of Arthur J. Gallagher & Co. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
AON has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Arthur J. Gallagher & Co. has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.
Arthur J. Gallagher & Co. received 4 more outperform votes than AON when rated by MarketBeat users. Likewise, 60.02% of users gave Arthur J. Gallagher & Co. an outperform vote while only 56.34% of users gave AON an outperform vote.
In the previous week, Arthur J. Gallagher & Co. had 4 more articles in the media than AON. MarketBeat recorded 18 mentions for Arthur J. Gallagher & Co. and 14 mentions for AON. Arthur J. Gallagher & Co.'s average media sentiment score of 1.00 beat AON's score of 0.43 indicating that Arthur J. Gallagher & Co. is being referred to more favorably in the news media.
Summary
Arthur J. Gallagher & Co. beats AON on 11 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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