AON vs. BRK-B: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AON and BRK-B, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BRK-B’s market capitalization of 1,047.52 billion USD is significantly greater than AON’s 76.61 billion USD, highlighting its more substantial market valuation.
With betas of 0.86 for AON and 0.84 for BRK-B, both stocks show similar sensitivity to overall market movements.
| Symbol | AON | BRK-B |
|---|---|---|
| Company Name | Aon plc | Berkshire Hathaway Inc. |
| Country | IE | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Insurance - Diversified |
| CEO | Gregory Clarence Case | Warren E. Buffett |
| Price | 354.76 USD | 485 USD |
| Market Cap | 76.61 billion USD | 1,047.52 billion USD |
| Beta | 0.86 | 0.84 |
| Exchange | NYSE | NYSE |
| IPO Date | June 2, 1980 | May 9, 1996 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AON and BRK-B 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.
Profitability
Return on Equity
AON
40.40%
Insurance - Brokers Industry
- Max
- 40.40%
- Q3
- 30.52%
- Median
- 22.48%
- Q1
- 4.38%
- Min
- -5.38%
In the upper quartile for the Insurance - Brokers industry, AON’s Return on Equity of 40.40% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
BRK-B
12.77%
Insurance - Diversified Industry
- Max
- 19.59%
- Q3
- 17.66%
- Median
- 12.77%
- Q1
- 7.56%
- Min
- -4.43%
BRK-B’s Return on Equity of 12.77% is on par with the norm for the Insurance - Diversified industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AON
10.73%
Insurance - Brokers Industry
- Max
- 11.62%
- Q3
- 11.18%
- Median
- 8.38%
- Q1
- 2.57%
- Min
- -1.51%
AON’s Return on Invested Capital of 10.73% is in line with the norm for the Insurance - Brokers industry, reflecting a standard level of efficiency in generating profits from its capital base.
BRK-B
7.95%
Insurance - Diversified Industry
- Max
- 32.46%
- Q3
- 16.21%
- Median
- 9.46%
- Q1
- 2.09%
- Min
- -10.51%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Diversified industry.
Net Profit Margin
AON
15.58%
Insurance - Brokers Industry
- Max
- 21.33%
- Q3
- 15.86%
- Median
- 10.63%
- Q1
- 1.06%
- Min
- -2.28%
AON’s Net Profit Margin of 15.58% is aligned with the median group of its peers in the Insurance - Brokers industry. This indicates its ability to convert revenue into profit is typical for the sector.
BRK-B
21.07%
Insurance - Diversified Industry
- Max
- 26.00%
- Q3
- 19.46%
- Median
- 9.37%
- Q1
- 5.55%
- Min
- -7.05%
A Net Profit Margin of 21.07% places BRK-B in the upper quartile for the Insurance - Diversified industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AON
23.42%
Insurance - Brokers Industry
- Max
- 28.73%
- Q3
- 23.24%
- Median
- 21.46%
- Q1
- 10.89%
- Min
- 5.35%
An Operating Profit Margin of 23.42% places AON in the upper quartile for the Insurance - Brokers industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
BRK-B
25.62%
Insurance - Diversified Industry
- Max
- 44.52%
- Q3
- 25.84%
- Median
- 14.16%
- Q1
- 6.78%
- Min
- -2.60%
BRK-B’s Operating Profit Margin of 25.62% is around the midpoint for the Insurance - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AON | BRK-B |
|---|---|---|
| Return on Equity (TTM) | 40.40% | 12.77% |
| Return on Assets (TTM) | 5.07% | 6.95% |
| Return on Invested Capital (TTM) | 10.73% | 7.95% |
| Net Profit Margin (TTM) | 15.58% | 21.07% |
| Operating Profit Margin (TTM) | 23.42% | 25.62% |
| Gross Profit Margin (TTM) | 47.12% | 39.00% |
Financial Strength
Current Ratio
AON
1.05
Insurance - Brokers Industry
- Max
- 1.90
- Q3
- 1.76
- Median
- 1.29
- Q1
- 1.14
- Min
- 1.05
AON’s Current Ratio of 1.05 falls into the lower quartile for the Insurance - Brokers industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
BRK-B
2.87
Insurance - Diversified Industry
- Max
- 4.41
- Q3
- 4.03
- Median
- 2.86
- Q1
- 2.82
- Min
- 2.82
BRK-B’s Current Ratio of 2.87 aligns with the median group of the Insurance - Diversified industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AON
2.64
Insurance - Brokers Industry
- Max
- 4.59
- Q3
- 2.12
- Median
- 0.59
- Q1
- 0.07
- Min
- 0.01
AON’s leverage is in the upper quartile of the Insurance - Brokers industry, with a Debt-to-Equity Ratio of 2.64. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
BRK-B
0.19
Insurance - Diversified Industry
- Max
- 0.54
- Q3
- 0.39
- Median
- 0.27
- Q1
- 0.21
- Min
- 0.13
Falling into the lower quartile for the Insurance - Diversified industry, BRK-B’s Debt-to-Equity Ratio of 0.19 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
AON
4.51
Insurance - Brokers Industry
- Max
- 29.40
- Q3
- 16.65
- Median
- 7.25
- Q1
- 4.20
- Min
- 1.60
AON’s Interest Coverage Ratio of 4.51 is positioned comfortably within the norm for the Insurance - Brokers industry, indicating a standard and healthy capacity to cover its interest payments.
BRK-B
19.13
Insurance - Diversified Industry
- Max
- 19.23
- Q3
- 17.46
- Median
- 7.97
- Q1
- 4.61
- Min
- -1.63
BRK-B’s Interest Coverage Ratio of 19.13 is in the upper quartile for the Insurance - Diversified industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AON | BRK-B |
|---|---|---|
| Current Ratio (TTM) | 1.05 | 2.87 |
| Quick Ratio (TTM) | 1.05 | 2.72 |
| Debt-to-Equity Ratio (TTM) | 2.64 | 0.19 |
| Debt-to-Asset Ratio (TTM) | 0.37 | 0.11 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.41 | 0.71 |
| Interest Coverage Ratio (TTM) | 4.51 | 19.13 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AON and BRK-B. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AON
0.78%
Insurance - Brokers Industry
- Max
- 2.63%
- Q3
- 1.34%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
AON’s Dividend Yield of 0.78% is consistent with its peers in the Insurance - Brokers industry, providing a dividend return that is standard for its sector.
BRK-B
0.00%
Insurance - Diversified Industry
- Max
- 8.16%
- Q3
- 5.54%
- Median
- 2.46%
- Q1
- 1.59%
- Min
- 0.00%
BRK-B currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio
AON
23.00%
Insurance - Brokers Industry
- Max
- 45.22%
- Q3
- 39.19%
- Median
- 29.49%
- Q1
- 3.85%
- Min
- 0.00%
AON’s Dividend Payout Ratio of 23.00% is within the typical range for the Insurance - Brokers industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
BRK-B
0.00%
Insurance - Diversified Industry
- Max
- 101.86%
- Q3
- 53.36%
- Median
- 21.69%
- Q1
- 5.33%
- Min
- 0.00%
BRK-B has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | AON | BRK-B |
|---|---|---|
| Dividend Yield (TTM) | 0.78% | 0.00% |
| Dividend Payout Ratio (TTM) | 23.00% | 0.00% |
Valuation
Price-to-Earnings Ratio
AON
30.13
Insurance - Brokers Industry
- Max
- 45.50
- Q3
- 35.20
- Median
- 30.00
- Q1
- 28.34
- Min
- 26.42
AON’s P/E Ratio of 30.13 is within the middle range for the Insurance - Brokers industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
BRK-B
12.93
Insurance - Diversified Industry
- Max
- 18.52
- Q3
- 16.13
- Median
- 13.33
- Q1
- 9.73
- Min
- 2.62
BRK-B’s P/E Ratio of 12.93 is within the middle range for the Insurance - Diversified industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AON
2.89
Insurance - Brokers Industry
- Max
- 3.32
- Q3
- 3.00
- Median
- 2.77
- Q1
- 2.41
- Min
- 2.09
AON’s Forward PEG Ratio of 2.89 is within the middle range of its peers in the Insurance - Brokers industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
BRK-B
2.59
Insurance - Diversified Industry
- Max
- 2.60
- Q3
- 2.07
- Median
- 1.20
- Q1
- 0.77
- Min
- 0.04
A Forward PEG Ratio of 2.59 places BRK-B in the upper quartile for the Insurance - Diversified industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
AON
4.68
Insurance - Brokers Industry
- Max
- 7.38
- Q3
- 5.34
- Median
- 4.27
- Q1
- 2.32
- Min
- 0.27
AON’s P/S Ratio of 4.68 aligns with the market consensus for the Insurance - Brokers industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
BRK-B
2.73
Insurance - Diversified Industry
- Max
- 3.08
- Q3
- 2.00
- Median
- 1.15
- Q1
- 1.07
- Min
- 0.38
BRK-B’s P/S Ratio of 2.73 is in the upper echelon for the Insurance - Diversified industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
AON
10.96
Insurance - Brokers Industry
- Max
- 10.90
- Q3
- 8.10
- Median
- 6.93
- Q1
- 4.15
- Min
- 1.12
At 10.96, AON’s P/B Ratio is at an extreme premium to the Insurance - Brokers 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.
BRK-B
1.60
Insurance - Diversified Industry
- Max
- 2.12
- Q3
- 1.80
- Median
- 1.59
- Q1
- 1.29
- Min
- 0.74
BRK-B’s P/B Ratio of 1.60 is within the conventional range for the Insurance - Diversified 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.
Valuation at a Glance
| Symbol | AON | BRK-B |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 30.13 | 12.93 |
| Forward PEG Ratio (TTM) | 2.89 | 2.59 |
| Price-to-Sales Ratio (P/S, TTM) | 4.68 | 2.73 |
| Price-to-Book Ratio (P/B, TTM) | 10.96 | 1.60 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 29.02 | 86.82 |
| EV-to-EBITDA (TTM) | 18.30 | 9.59 |
| EV-to-Sales (TTM) | 5.76 | 2.95 |