AON vs. MCO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AON and MCO, 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 MCO’s is 90.86 billion USD, indicating their market valuations are broadly comparable.
MCO carries a higher beta at 1.38, indicating it’s more sensitive to market moves, while AON (beta: 0.86) exhibits greater stability.
| Symbol | AON | MCO |
|---|---|---|
| Company Name | Aon plc | Moody's Corporation |
| Country | IE | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Financial - Data & Stock Exchanges |
| CEO | Gregory Clarence Case | Robert Scott Fauber |
| Price | 354.76 USD | 505.06 USD |
| Market Cap | 76.61 billion USD | 90.86 billion USD |
| Beta | 0.86 | 1.38 |
| Exchange | NYSE | NYSE |
| IPO Date | June 2, 1980 | October 31, 1994 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AON and MCO 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.
MCO
56.36%
Financial - Data & Stock Exchanges Industry
- Max
- 26.26%
- Q3
- 23.14%
- Median
- 14.33%
- Q1
- 11.12%
- Min
- -0.64%
MCO’s Return on Equity of 56.36% is exceptionally high, placing it well beyond the typical range for the Financial - Data & Stock Exchanges industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
MCO
18.31%
Financial - Data & Stock Exchanges Industry
- Max
- 18.31%
- Q3
- 14.86%
- Median
- 11.07%
- Q1
- 6.75%
- Min
- 4.04%
In the upper quartile for the Financial - Data & Stock Exchanges industry, MCO’s Return on Invested Capital of 18.31% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
MCO
29.14%
Financial - Data & Stock Exchanges Industry
- Max
- 39.08%
- Q3
- 31.63%
- Median
- 23.20%
- Q1
- 18.09%
- Min
- -0.88%
MCO’s Net Profit Margin of 29.14% is aligned with the median group of its peers in the Financial - Data & Stock Exchanges industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
MCO
40.63%
Financial - Data & Stock Exchanges Industry
- Max
- 53.68%
- Q3
- 40.45%
- Median
- 31.81%
- Q1
- 24.66%
- Min
- 9.71%
An Operating Profit Margin of 40.63% places MCO in the upper quartile for the Financial - Data & Stock Exchanges industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AON | MCO |
|---|---|---|
| Return on Equity (TTM) | 40.40% | 56.36% |
| Return on Assets (TTM) | 5.07% | 13.95% |
| Return on Invested Capital (TTM) | 10.73% | 18.31% |
| Net Profit Margin (TTM) | 15.58% | 29.14% |
| Operating Profit Margin (TTM) | 23.42% | 40.63% |
| Gross Profit Margin (TTM) | 47.12% | 69.71% |
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.
MCO
1.56
Financial - Data & Stock Exchanges Industry
- Max
- 1.60
- Q3
- 1.57
- Median
- 1.06
- Q1
- 0.96
- Min
- 0.62
MCO’s Current Ratio of 1.56 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.
MCO
1.93
Financial - Data & Stock Exchanges Industry
- Max
- 1.09
- Q3
- 0.80
- Median
- 0.62
- Q1
- 0.36
- Min
- 0.04
With a Debt-to-Equity Ratio of 1.93, MCO operates with exceptionally high leverage compared to the Financial - Data & Stock Exchanges industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
MCO
8.64
Financial - Data & Stock Exchanges Industry
- Max
- 27.44
- Q3
- 22.05
- Median
- 10.08
- Q1
- 6.79
- Min
- 1.01
MCO’s Interest Coverage Ratio of 8.64 is positioned comfortably within the norm for the Financial - Data & Stock Exchanges industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AON | MCO |
|---|---|---|
| Current Ratio (TTM) | 1.05 | 1.56 |
| Quick Ratio (TTM) | 1.05 | 1.56 |
| Debt-to-Equity Ratio (TTM) | 2.64 | 1.93 |
| Debt-to-Asset Ratio (TTM) | 0.37 | 0.47 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.41 | 1.72 |
| Interest Coverage Ratio (TTM) | 4.51 | 8.64 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AON and MCO. 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.
MCO
0.71%
Financial - Data & Stock Exchanges Industry
- Max
- 3.86%
- Q3
- 1.44%
- Median
- 1.06%
- Q1
- 0.73%
- Min
- 0.00%
MCO’s Dividend Yield of 0.71% is in the lower quartile for the Financial - Data & Stock Exchanges industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
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.
MCO
31.34%
Financial - Data & Stock Exchanges Industry
- Max
- 106.40%
- Q3
- 44.44%
- Median
- 31.97%
- Q1
- 29.26%
- Min
- 0.00%
MCO’s Dividend Payout Ratio of 31.34% is within the typical range for the Financial - Data & Stock Exchanges industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AON | MCO |
|---|---|---|
| Dividend Yield (TTM) | 0.78% | 0.71% |
| Dividend Payout Ratio (TTM) | 23.00% | 31.34% |
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.
MCO
43.17
Financial - Data & Stock Exchanges Industry
- Max
- 41.71
- Q3
- 40.17
- Median
- 37.47
- Q1
- 30.61
- Min
- 16.74
At 43.17, MCO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial - Data & Stock Exchanges industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
MCO
4.70
Financial - Data & Stock Exchanges Industry
- Max
- 4.54
- Q3
- 4.09
- Median
- 4.06
- Q1
- 3.33
- Min
- 2.36
MCO’s Forward PEG Ratio of 4.70 is exceptionally high for the Financial - Data & Stock Exchanges industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
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.
MCO
12.57
Financial - Data & Stock Exchanges Industry
- Max
- 15.75
- Q3
- 12.42
- Median
- 9.37
- Q1
- 6.34
- Min
- 1.69
MCO’s P/S Ratio of 12.57 is in the upper echelon for the Financial - Data & Stock Exchanges 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.
MCO
24.57
Financial - Data & Stock Exchanges Industry
- Max
- 8.57
- Q3
- 8.05
- Median
- 4.77
- Q1
- 3.69
- Min
- 1.19
At 24.57, MCO’s P/B Ratio is at an extreme premium to the Financial - Data & Stock Exchanges 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.
Valuation at a Glance
| Symbol | AON | MCO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 30.13 | 43.17 |
| Forward PEG Ratio (TTM) | 2.89 | 4.70 |
| Price-to-Sales Ratio (P/S, TTM) | 4.68 | 12.57 |
| Price-to-Book Ratio (P/B, TTM) | 10.96 | 24.57 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 29.02 | 36.40 |
| EV-to-EBITDA (TTM) | 18.30 | 32.91 |
| EV-to-Sales (TTM) | 5.76 | 13.27 |