AON vs. SMFG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AON and SMFG, 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 SMFG’s is 98.59 billion USD, indicating their market valuations are broadly comparable.
AON’s beta of 0.86 points to significantly higher volatility compared to SMFG (beta: 0.22), suggesting AON has greater potential for both gains and losses relative to market movements.
SMFG is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AON, on the other hand, is a domestic entity.
| Symbol | AON | SMFG |
|---|---|---|
| Company Name | Aon plc | Sumitomo Mitsui Financial Group, Inc. |
| Country | IE | JP |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Banks - Diversified |
| CEO | Gregory Clarence Case | Toru Nakashima |
| Price | 354.76 USD | 15.28 USD |
| Market Cap | 76.61 billion USD | 98.59 billion USD |
| Beta | 0.86 | 0.22 |
| Exchange | NYSE | NYSE |
| IPO Date | June 2, 1980 | January 27, 2006 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AON and SMFG 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.
SMFG
7.91%
Banks - Diversified Industry
- Max
- 20.93%
- Q3
- 14.73%
- Median
- 12.33%
- Q1
- 9.14%
- Min
- 5.86%
SMFG’s Return on Equity of 7.91% is in the lower quartile for the Banks - Diversified industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
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.
SMFG
1.13%
Banks - Diversified Industry
- Max
- 4.52%
- Q3
- 2.95%
- Median
- 1.89%
- Q1
- 0.86%
- Min
- 0.18%
Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - 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.
SMFG
19.24%
Banks - Diversified Industry
- Max
- 33.40%
- Q3
- 26.40%
- Median
- 19.24%
- Q1
- 14.99%
- Min
- 7.95%
SMFG’s Net Profit Margin of 19.24% is aligned with the median group of its peers in the Banks - Diversified 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.
SMFG
28.44%
Banks - Diversified Industry
- Max
- 50.90%
- Q3
- 37.76%
- Median
- 28.44%
- Q1
- 15.73%
- Min
- 8.60%
SMFG’s Operating Profit Margin of 28.44% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AON | SMFG |
|---|---|---|
| Return on Equity (TTM) | 40.40% | 7.91% |
| Return on Assets (TTM) | 5.07% | 0.38% |
| Return on Invested Capital (TTM) | 10.73% | 1.13% |
| Net Profit Margin (TTM) | 15.58% | 19.24% |
| Operating Profit Margin (TTM) | 23.42% | 28.44% |
| Gross Profit Margin (TTM) | 47.12% | 79.72% |
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.
SMFG
0.45
Banks - Diversified Industry
- Max
- 0.67
- Q3
- 0.49
- Median
- 0.39
- Q1
- 0.28
- Min
- 0.06
For the Banks - Diversified industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
SMFG
3.96
Banks - Diversified Industry
- Max
- 4.98
- Q3
- 3.65
- Median
- 3.13
- Q1
- 1.73
- Min
- 0.09
SMFG’s leverage is in the upper quartile of the Banks - Diversified industry, with a Debt-to-Equity Ratio of 3.96. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
SMFG
0.38
Banks - Diversified Industry
- Max
- 0.98
- Q3
- 0.78
- Median
- 0.55
- Q1
- 0.31
- Min
- 0.09
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Diversified industry.
Financial Strength at a Glance
| Symbol | AON | SMFG |
|---|---|---|
| Current Ratio (TTM) | 1.05 | 0.45 |
| Quick Ratio (TTM) | 1.05 | 0.45 |
| Debt-to-Equity Ratio (TTM) | 2.64 | 3.96 |
| Debt-to-Asset Ratio (TTM) | 0.37 | 0.19 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.41 | -10.34 |
| Interest Coverage Ratio (TTM) | 4.51 | 0.38 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AON and SMFG. 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.
SMFG
3.30%
Banks - Diversified Industry
- Max
- 7.73%
- Q3
- 4.16%
- Median
- 3.24%
- Q1
- 2.27%
- Min
- 0.00%
SMFG’s Dividend Yield of 3.30% is consistent with its peers in the Banks - Diversified industry, providing a dividend return that is standard for its sector.
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.
SMFG
0.00%
Banks - Diversified Industry
- Max
- 84.94%
- Q3
- 39.11%
- Median
- 26.91%
- Q1
- 0.00%
- Min
- 0.00%
SMFG 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 | SMFG |
|---|---|---|
| Dividend Yield (TTM) | 0.78% | 3.30% |
| 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.
SMFG
12.14
Banks - Diversified Industry
- Max
- 14.13
- Q3
- 13.37
- Median
- 11.90
- Q1
- 9.29
- Min
- 7.43
SMFG’s P/E Ratio of 12.14 is within the middle range for the Banks - 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.
SMFG
2.00
Banks - Diversified Industry
- Max
- 1.98
- Q3
- 1.41
- Median
- 1.15
- Q1
- 0.77
- Min
- 0.45
SMFG’s Forward PEG Ratio of 2.00 is exceptionally high for the Banks - Diversified 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.
SMFG
2.34
Banks - Diversified Industry
- Max
- 4.15
- Q3
- 2.92
- Median
- 2.29
- Q1
- 1.83
- Min
- 0.94
The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.
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.
SMFG
0.97
Banks - Diversified Industry
- Max
- 1.89
- Q3
- 1.47
- Median
- 1.23
- Q1
- 1.10
- Min
- 0.65
SMFG’s P/B Ratio of 0.97 is in the lower quartile for the Banks - Diversified 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 | SMFG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 30.13 | 12.14 |
| Forward PEG Ratio (TTM) | 2.89 | 2.00 |
| Price-to-Sales Ratio (P/S, TTM) | 4.68 | 2.34 |
| Price-to-Book Ratio (P/B, TTM) | 10.96 | 0.97 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 29.02 | -- |
| EV-to-EBITDA (TTM) | 18.30 | -1.79 |
| EV-to-Sales (TTM) | 5.76 | -0.49 |