AON vs. CME: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AON and CME, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AON’s market capitalization stands at 76.61 billion USD, while CME’s is 99.71 billion USD, indicating their market valuations are broadly comparable.
AON’s beta of 0.86 points to significantly higher volatility compared to CME (beta: 0.48), suggesting AON has greater potential for both gains and losses relative to market movements.
| Symbol | AON | CME |
|---|---|---|
| Company Name | Aon plc | CME Group Inc. |
| Country | IE | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Financial - Data & Stock Exchanges |
| CEO | Gregory Clarence Case | Terrence A. Duffy |
| Price | 354.76 USD | 276.7 USD |
| Market Cap | 76.61 billion USD | 99.71 billion USD |
| Beta | 0.86 | 0.48 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 2, 1980 | December 6, 2002 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AON and CME 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.
CME
13.26%
Financial - Data & Stock Exchanges Industry
- Max
- 26.26%
- Q3
- 23.14%
- Median
- 14.33%
- Q1
- 11.12%
- Min
- -0.64%
CME’s Return on Equity of 13.26% is on par with the norm for the Financial - Data & Stock Exchanges 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.
CME
8.70%
Financial - Data & Stock Exchanges Industry
- Max
- 18.31%
- Q3
- 14.86%
- Median
- 11.07%
- Q1
- 6.75%
- Min
- 4.04%
CME’s Return on Invested Capital of 8.70% is in line with the norm for the Financial - Data & Stock Exchanges industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
CME
57.71%
Financial - Data & Stock Exchanges Industry
- Max
- 39.08%
- Q3
- 31.63%
- Median
- 23.20%
- Q1
- 18.09%
- Min
- -0.88%
CME’s Net Profit Margin of 57.71% is exceptionally high, placing it well beyond the typical range for the Financial - Data & Stock Exchanges industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
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.
CME
64.92%
Financial - Data & Stock Exchanges Industry
- Max
- 53.68%
- Q3
- 40.45%
- Median
- 31.81%
- Q1
- 24.66%
- Min
- 9.71%
CME’s Operating Profit Margin of 64.92% is exceptionally high, placing it well above the typical range for the Financial - Data & Stock Exchanges industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | AON | CME |
|---|---|---|
| Return on Equity (TTM) | 40.40% | 13.26% |
| Return on Assets (TTM) | 5.07% | 2.30% |
| Return on Invested Capital (TTM) | 10.73% | 8.70% |
| Net Profit Margin (TTM) | 15.58% | 57.71% |
| Operating Profit Margin (TTM) | 23.42% | 64.92% |
| Gross Profit Margin (TTM) | 47.12% | 86.46% |
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.
CME
1.02
Financial - Data & Stock Exchanges Industry
- Max
- 1.60
- Q3
- 1.57
- Median
- 1.06
- Q1
- 0.96
- Min
- 0.62
CME’s Current Ratio of 1.02 aligns with the median group of the Financial - Data & Stock Exchanges 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.
CME
0.13
Financial - Data & Stock Exchanges Industry
- Max
- 1.09
- Q3
- 0.80
- Median
- 0.62
- Q1
- 0.36
- Min
- 0.04
Falling into the lower quartile for the Financial - Data & Stock Exchanges industry, CME’s Debt-to-Equity Ratio of 0.13 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.
CME
25.08
Financial - Data & Stock Exchanges Industry
- Max
- 27.44
- Q3
- 22.05
- Median
- 10.08
- Q1
- 6.79
- Min
- 1.01
CME’s Interest Coverage Ratio of 25.08 is in the upper quartile for the Financial - Data & Stock Exchanges industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AON | CME |
|---|---|---|
| Current Ratio (TTM) | 1.05 | 1.02 |
| Quick Ratio (TTM) | 1.05 | 1.02 |
| Debt-to-Equity Ratio (TTM) | 2.64 | 0.13 |
| Debt-to-Asset Ratio (TTM) | 0.37 | 0.02 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.41 | 0.40 |
| Interest Coverage Ratio (TTM) | 4.51 | 25.08 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AON and CME. 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.
CME
3.83%
Financial - Data & Stock Exchanges Industry
- Max
- 3.86%
- Q3
- 1.44%
- Median
- 1.06%
- Q1
- 0.73%
- Min
- 0.00%
With a Dividend Yield of 3.83%, CME offers a more attractive income stream than most of its peers in the Financial - Data & Stock Exchanges industry, signaling a strong commitment to shareholder returns.
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.
CME
105.42%
Financial - Data & Stock Exchanges Industry
- Max
- 106.40%
- Q3
- 44.44%
- Median
- 31.97%
- Q1
- 29.26%
- Min
- 0.00%
CME’s Dividend Payout Ratio of 105.42% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | AON | CME |
|---|---|---|
| Dividend Yield (TTM) | 0.78% | 3.83% |
| Dividend Payout Ratio (TTM) | 23.00% | 105.42% |
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.
CME
27.44
Financial - Data & Stock Exchanges Industry
- Max
- 41.71
- Q3
- 40.17
- Median
- 37.47
- Q1
- 30.61
- Min
- 16.74
In the lower quartile for the Financial - Data & Stock Exchanges industry, CME’s P/E Ratio of 27.44 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
CME
4.25
Financial - Data & Stock Exchanges Industry
- Max
- 4.54
- Q3
- 4.09
- Median
- 4.06
- Q1
- 3.33
- Min
- 2.36
A Forward PEG Ratio of 4.25 places CME in the upper quartile for the Financial - Data & Stock Exchanges 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.
CME
15.87
Financial - Data & Stock Exchanges Industry
- Max
- 15.75
- Q3
- 12.42
- Median
- 9.37
- Q1
- 6.34
- Min
- 1.69
With a P/S Ratio of 15.87, CME trades at a valuation that eclipses even the highest in the Financial - Data & Stock Exchanges industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
CME
3.68
Financial - Data & Stock Exchanges Industry
- Max
- 8.57
- Q3
- 8.05
- Median
- 4.77
- Q1
- 3.69
- Min
- 1.19
CME’s P/B Ratio of 3.68 is in the lower quartile for the Financial - Data & Stock Exchanges industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | AON | CME |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 30.13 | 27.44 |
| Forward PEG Ratio (TTM) | 2.89 | 4.25 |
| Price-to-Sales Ratio (P/S, TTM) | 4.68 | 15.87 |
| Price-to-Book Ratio (P/B, TTM) | 10.96 | 3.68 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 29.02 | 26.06 |
| EV-to-EBITDA (TTM) | 18.30 | 20.45 |
| EV-to-Sales (TTM) | 5.76 | 16.19 |