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ACGL vs. AON: A Head-to-Head Stock Comparison

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Here’s a clear look at ACGL and AON, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolACGLAON
Company NameArch Capital Group Ltd.Aon plc
CountryBermudaIreland
GICS SectorFinancialsFinancials
GICS IndustryInsuranceInsurance
Market Capitalization34.65 billion USD80.64 billion USD
ExchangeNasdaqGSNYSE
Listing DateSeptember 14, 1995June 2, 1980
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ACGL and AON by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ACGL vs. AON: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolACGLAON
5-Day Price Return1.51%0.52%
13-Week Price Return-2.44%3.02%
26-Week Price Return2.97%-3.59%
52-Week Price Return-9.86%12.29%
Month-to-Date Return7.88%4.82%
Year-to-Date Return0.53%3.81%
10-Day Avg. Volume1.98M1.44M
3-Month Avg. Volume1.96M1.42M
3-Month Volatility23.39%21.92%
Beta0.470.91

Profitability

Return on Equity (TTM)

ACGL

17.03%

Insurance Industry

Max
29.03%
Q3
18.11%
Median
13.90%
Q1
10.42%
Min
-0.64%

ACGL’s Return on Equity of 17.03% is on par with the norm for the Insurance industry, indicating its profitability relative to shareholder equity is typical for the sector.

AON

38.26%

Insurance Industry

Max
29.03%
Q3
18.11%
Median
13.90%
Q1
10.42%
Min
-0.64%

AON’s Return on Equity of 38.26% is exceptionally high, placing it well beyond the typical range for the Insurance industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ACGL vs. AON: A comparison of their Return on Equity (TTM) against the Insurance industry benchmark.

Net Profit Margin (TTM)

ACGL

20.05%

Insurance Industry

Max
26.78%
Q3
14.06%
Median
9.15%
Q1
5.48%
Min
-7.05%

A Net Profit Margin of 20.05% places ACGL in the upper quartile for the Insurance industry, signifying strong profitability and more effective cost management than most of its peers.

AON

15.54%

Insurance Industry

Max
26.78%
Q3
14.06%
Median
9.15%
Q1
5.48%
Min
-7.05%

A Net Profit Margin of 15.54% places AON in the upper quartile for the Insurance industry, signifying strong profitability and more effective cost management than most of its peers.

ACGL vs. AON: A comparison of their Net Profit Margin (TTM) against the Insurance industry benchmark.

Operating Profit Margin (TTM)

ACGL

20.17%

Insurance Industry

Max
35.49%
Q3
19.49%
Median
14.35%
Q1
8.53%
Min
-5.25%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

AON

24.55%

Insurance Industry

Max
35.49%
Q3
19.49%
Median
14.35%
Q1
8.53%
Min
-5.25%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

ACGL vs. AON: A comparison of their Operating Profit Margin (TTM) against the Insurance industry benchmark.

Profitability at a Glance

SymbolACGLAON
Return on Equity (TTM)17.03%38.26%
Return on Assets (TTM)5.00%5.12%
Net Profit Margin (TTM)20.05%15.54%
Operating Profit Margin (TTM)20.17%24.55%
Gross Profit Margin (TTM)--47.00%

Financial Strength

Current Ratio (MRQ)

ACGL

0.72

Insurance Industry

Max
2.97
Q3
1.33
Median
0.55
Q1
0.15
Min
0.00

For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

AON

1.03

Insurance Industry

Max
2.97
Q3
1.33
Median
0.55
Q1
0.15
Min
0.00

For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ACGL vs. AON: A comparison of their Current Ratio (MRQ) against the Insurance industry benchmark.

Debt-to-Equity Ratio (MRQ)

ACGL

0.12

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.22
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

AON

2.20

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.22
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

ACGL vs. AON: A comparison of their Debt-to-Equity Ratio (MRQ) against the Insurance industry benchmark.

Interest Coverage Ratio (TTM)

ACGL

6.33

Insurance Industry

Max
43.68
Q3
20.84
Median
9.56
Q1
3.34
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

AON

6.29

Insurance Industry

Max
43.68
Q3
20.84
Median
9.56
Q1
3.34
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

ACGL vs. AON: A comparison of their Interest Coverage Ratio (TTM) against the Insurance industry benchmark.

Financial Strength at a Glance

SymbolACGLAON
Current Ratio (MRQ)0.721.03
Quick Ratio (MRQ)0.721.02
Debt-to-Equity Ratio (MRQ)0.122.20
Interest Coverage Ratio (TTM)6.336.29

Growth

Revenue Growth

ACGL vs. AON: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ACGL vs. AON: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ACGL

5.51%

Insurance Industry

Max
8.23%
Q3
4.54%
Median
3.42%
Q1
1.97%
Min
0.00%

With a Dividend Yield of 5.51%, ACGL offers a more attractive income stream than most of its peers in the Insurance industry, signaling a strong commitment to shareholder returns.

AON

0.75%

Insurance Industry

Max
8.23%
Q3
4.54%
Median
3.42%
Q1
1.97%
Min
0.00%

AON’s Dividend Yield of 0.75% is in the lower quartile for the Insurance industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ACGL vs. AON: A comparison of their Dividend Yield (TTM) against the Insurance industry benchmark.

Dividend Payout Ratio (TTM)

ACGL

51.23%

Insurance Industry

Max
168.02%
Q3
85.57%
Median
50.71%
Q1
22.04%
Min
0.00%

ACGL’s Dividend Payout Ratio of 51.23% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AON

23.09%

Insurance Industry

Max
168.02%
Q3
85.57%
Median
50.71%
Q1
22.04%
Min
0.00%

AON’s Dividend Payout Ratio of 23.09% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ACGL vs. AON: A comparison of their Dividend Payout Ratio (TTM) against the Insurance industry benchmark.

Dividend at a Glance

SymbolACGLAON
Dividend Yield (TTM)5.51%0.75%
Dividend Payout Ratio (TTM)51.23%23.09%

Valuation

Price-to-Earnings Ratio (TTM)

ACGL

9.30

Insurance Industry

Max
28.91
Q3
17.76
Median
13.63
Q1
10.02
Min
2.89

In the lower quartile for the Insurance industry, ACGL’s P/E Ratio of 9.30 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AON

30.92

Insurance Industry

Max
28.91
Q3
17.76
Median
13.63
Q1
10.02
Min
2.89

At 30.92, AON’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Insurance industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ACGL vs. AON: A comparison of their Price-to-Earnings Ratio (TTM) against the Insurance industry benchmark.

Price-to-Sales Ratio (TTM)

ACGL

1.86

Insurance Industry

Max
3.72
Q3
1.98
Median
1.23
Q1
0.81
Min
0.23

ACGL’s P/S Ratio of 1.86 aligns with the market consensus for the Insurance industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AON

4.80

Insurance Industry

Max
3.72
Q3
1.98
Median
1.23
Q1
0.81
Min
0.23

With a P/S Ratio of 4.80, AON trades at a valuation that eclipses even the highest in the Insurance industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ACGL vs. AON: A comparison of their Price-to-Sales Ratio (TTM) against the Insurance industry benchmark.

Price-to-Book Ratio (MRQ)

ACGL

1.48

Insurance Industry

Max
4.37
Q3
2.48
Median
1.68
Q1
1.19
Min
0.19

ACGL’s P/B Ratio of 1.48 is within the conventional range for the Insurance industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AON

9.82

Insurance Industry

Max
4.37
Q3
2.48
Median
1.68
Q1
1.19
Min
0.19

At 9.82, AON’s P/B Ratio is at an extreme premium to the Insurance industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ACGL vs. AON: A comparison of their Price-to-Book Ratio (MRQ) against the Insurance industry benchmark.

Valuation at a Glance

SymbolACGLAON
Price-to-Earnings Ratio (TTM)9.3030.92
Price-to-Sales Ratio (TTM)1.864.80
Price-to-Book Ratio (MRQ)1.489.82
Price-to-Free Cash Flow Ratio (TTM)5.6727.64