AON vs. PRU: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AON and PRU, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AON’s market capitalization of 76.61 billion USD is substantially larger than PRU’s 38.61 billion USD, indicating a significant difference in their market valuations.
With betas of 0.86 for AON and 1.05 for PRU, both stocks show similar sensitivity to overall market movements.
| Symbol | AON | PRU |
|---|---|---|
| Company Name | Aon plc | Prudential Financial, Inc. |
| Country | IE | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Insurance - Life |
| CEO | Gregory Clarence Case | Andrew Francis Sullivan |
| Price | 354.76 USD | 109.08 USD |
| Market Cap | 76.61 billion USD | 38.61 billion USD |
| Beta | 0.86 | 1.05 |
| Exchange | NYSE | NYSE |
| IPO Date | June 2, 1980 | December 13, 2001 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AON and PRU 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.
PRU
7.90%
Insurance - Life Industry
- Max
- 23.38%
- Q3
- 14.56%
- Median
- 11.23%
- Q1
- 1.67%
- Min
- -5.23%
PRU’s Return on Equity of 7.90% is on par with the norm for the Insurance - Life 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.
PRU
0.32%
Insurance - Life Industry
- Max
- 6.30%
- Q3
- 3.33%
- Median
- 2.16%
- Q1
- 0.68%
- Min
- -0.10%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Life 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.
PRU
3.79%
Insurance - Life Industry
- Max
- 21.20%
- Q3
- 11.59%
- Median
- 7.10%
- Q1
- 3.79%
- Min
- 2.14%
Falling into the lower quartile for the Insurance - Life industry, PRU’s Net Profit Margin of 3.79% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
PRU
4.52%
Insurance - Life Industry
- Max
- 38.96%
- Q3
- 37.28%
- Median
- 14.06%
- Q1
- 8.95%
- Min
- -1.68%
In the Insurance - Life industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | AON | PRU |
|---|---|---|
| Return on Equity (TTM) | 40.40% | 7.90% |
| Return on Assets (TTM) | 5.07% | 0.31% |
| Return on Invested Capital (TTM) | 10.73% | 0.32% |
| Net Profit Margin (TTM) | 15.58% | 3.79% |
| Operating Profit Margin (TTM) | 23.42% | 4.52% |
| Gross Profit Margin (TTM) | 47.12% | 27.02% |
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.
PRU
6.06
Insurance - Life Industry
- Max
- 843.97
- Q3
- 821.68
- Median
- 6.06
- Q1
- 3.15
- Min
- 0.47
PRU’s Current Ratio of 6.06 aligns with the median group of the Insurance - Life 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.
PRU
0.75
Insurance - Life Industry
- Max
- 0.86
- Q3
- 0.83
- Median
- 0.55
- Q1
- 0.37
- Min
- 0.27
PRU’s Debt-to-Equity Ratio of 0.75 is typical for the Insurance - Life industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
PRU
--
Insurance - Life Industry
- Max
- 37.82
- Q3
- 19.50
- Median
- 6.25
- Q1
- 2.29
- Min
- -0.76
Interest Coverage Ratio data for PRU is currently unavailable.
Financial Strength at a Glance
| Symbol | AON | PRU |
|---|---|---|
| Current Ratio (TTM) | 1.05 | 6.06 |
| Quick Ratio (TTM) | 1.05 | 6.06 |
| Debt-to-Equity Ratio (TTM) | 2.64 | 0.75 |
| Debt-to-Asset Ratio (TTM) | 0.37 | 0.03 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.41 | 2.47 |
| Interest Coverage Ratio (TTM) | 4.51 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AON and PRU. 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.
PRU
4.86%
Insurance - Life Industry
- Max
- 10.36%
- Q3
- 4.76%
- Median
- 2.40%
- Q1
- 1.51%
- Min
- 0.00%
With a Dividend Yield of 4.86%, PRU offers a more attractive income stream than most of its peers in the Insurance - Life 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.
PRU
82.71%
Insurance - Life Industry
- Max
- 203.94%
- Q3
- 64.38%
- Median
- 29.88%
- Q1
- 19.14%
- Min
- 0.00%
PRU’s Dividend Payout Ratio of 82.71% is in the upper quartile for the Insurance - Life industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AON | PRU |
|---|---|---|
| Dividend Yield (TTM) | 0.78% | 4.86% |
| Dividend Payout Ratio (TTM) | 23.00% | 82.71% |
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.
PRU
16.83
Insurance - Life Industry
- Max
- 17.82
- Q3
- 16.08
- Median
- 12.43
- Q1
- 7.33
- Min
- 3.69
A P/E Ratio of 16.83 places PRU in the upper quartile for the Insurance - Life industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
PRU
2.22
Insurance - Life Industry
- Max
- 3.81
- Q3
- 1.95
- Median
- 0.97
- Q1
- 0.53
- Min
- 0.24
A Forward PEG Ratio of 2.22 places PRU in the upper quartile for the Insurance - Life 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.
PRU
0.64
Insurance - Life Industry
- Max
- 3.84
- Q3
- 2.89
- Median
- 1.06
- Q1
- 0.63
- Min
- 0.31
PRU’s P/S Ratio of 0.64 aligns with the market consensus for the Insurance - Life industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
PRU
1.29
Insurance - Life Industry
- Max
- 3.87
- Q3
- 2.13
- Median
- 1.49
- Q1
- 0.95
- Min
- 0.38
PRU’s P/B Ratio of 1.29 is within the conventional range for the Insurance - Life 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 | PRU |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 30.13 | 16.83 |
| Forward PEG Ratio (TTM) | 2.89 | 2.22 |
| Price-to-Sales Ratio (P/S, TTM) | 4.68 | 0.64 |
| Price-to-Book Ratio (P/B, TTM) | 10.96 | 1.29 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 29.02 | 49.82 |
| EV-to-EBITDA (TTM) | 18.30 | 17.53 |
| EV-to-Sales (TTM) | 5.76 | 0.74 |