AON vs. TPG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AON and TPG, 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 TPG’s 19.98 billion USD, indicating a significant difference in their market valuations.
TPG carries a higher beta at 1.53, indicating it’s more sensitive to market moves, while AON (beta: 0.86) exhibits greater stability.
| Symbol | AON | TPG |
|---|---|---|
| Company Name | Aon plc | TPG Inc. |
| Country | IE | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Asset Management |
| CEO | Gregory Clarence Case | Jon Winkelried |
| Price | 354.76 USD | 54.07 USD |
| Market Cap | 76.61 billion USD | 19.98 billion USD |
| Beta | 0.86 | 1.53 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 2, 1980 | January 13, 2022 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AON and TPG 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.
TPG
4.38%
Asset Management Industry
- Max
- 34.25%
- Q3
- 18.22%
- Median
- 11.24%
- Q1
- 5.81%
- Min
- -5.72%
TPG’s Return on Equity of 4.38% is in the lower quartile for the Asset Management 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.
TPG
-0.15%
Asset Management Industry
- Max
- 42.18%
- Q3
- 20.06%
- Median
- 8.68%
- Q1
- 3.13%
- Min
- -16.42%
TPG has a negative Return on Invested Capital of -0.15%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
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.
TPG
1.18%
Asset Management Industry
- Max
- 91.66%
- Q3
- 57.81%
- Median
- 29.48%
- Q1
- 15.70%
- Min
- -27.65%
Falling into the lower quartile for the Asset Management industry, TPG’s Net Profit Margin of 1.18% 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.
TPG
-2.14%
Asset Management Industry
- Max
- 99.76%
- Q3
- 78.28%
- Median
- 34.76%
- Q1
- 21.75%
- Min
- -48.25%
TPG has a negative Operating Profit Margin of -2.14%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | AON | TPG |
|---|---|---|
| Return on Equity (TTM) | 40.40% | 4.38% |
| Return on Assets (TTM) | 5.07% | 0.29% |
| Return on Invested Capital (TTM) | 10.73% | -0.15% |
| Net Profit Margin (TTM) | 15.58% | 1.18% |
| Operating Profit Margin (TTM) | 23.42% | -2.14% |
| Gross Profit Margin (TTM) | 47.12% | 66.90% |
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.
TPG
4.71
Asset Management Industry
- Max
- 12.44
- Q3
- 5.76
- Median
- 3.04
- Q1
- 1.03
- Min
- 0.01
TPG’s Current Ratio of 4.71 aligns with the median group of the Asset Management 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.
TPG
2.55
Asset Management Industry
- Max
- 2.62
- Q3
- 1.42
- Median
- 0.76
- Q1
- 0.34
- Min
- 0.01
TPG’s leverage is in the upper quartile of the Asset Management industry, with a Debt-to-Equity Ratio of 2.55. 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.
TPG
-0.67
Asset Management Industry
- Max
- 13.30
- Q3
- 6.30
- Median
- 2.71
- Q1
- 1.00
- Min
- -6.91
TPG has a negative Interest Coverage Ratio of -0.67. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | AON | TPG |
|---|---|---|
| Current Ratio (TTM) | 1.05 | 4.71 |
| Quick Ratio (TTM) | 1.05 | 4.71 |
| Debt-to-Equity Ratio (TTM) | 2.64 | 2.55 |
| Debt-to-Asset Ratio (TTM) | 0.37 | 0.19 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.41 | 5.19 |
| Interest Coverage Ratio (TTM) | 4.51 | -0.67 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AON and TPG. 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.
TPG
3.22%
Asset Management Industry
- Max
- 26.09%
- Q3
- 11.60%
- Median
- 6.37%
- Q1
- 2.75%
- Min
- 0.00%
TPG’s Dividend Yield of 3.22% is consistent with its peers in the Asset Management 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.
TPG
2,644.57%
Asset Management Industry
- Max
- 1,034.88%
- Q3
- 127.70%
- Median
- 75.15%
- Q1
- 34.21%
- Min
- 0.00%
TPG’s Dividend Payout Ratio of 2,644.57% 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 | TPG |
|---|---|---|
| Dividend Yield (TTM) | 0.78% | 3.22% |
| Dividend Payout Ratio (TTM) | 23.00% | 2644.57% |
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.
TPG
190.31
Asset Management Industry
- Max
- 38.72
- Q3
- 23.40
- Median
- 11.45
- Q1
- 8.80
- Min
- 1.54
At 190.31, TPG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Asset Management 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.
TPG
6.50
Asset Management Industry
- Max
- 6.38
- Q3
- 3.23
- Median
- 1.55
- Q1
- 0.89
- Min
- 0.02
TPG’s Forward PEG Ratio of 6.50 is exceptionally high for the Asset Management 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.
TPG
7.09
Asset Management Industry
- Max
- 13.75
- Q3
- 7.92
- Median
- 4.87
- Q1
- 3.51
- Min
- 0.02
TPG’s P/S Ratio of 7.09 aligns with the market consensus for the Asset Management 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.
TPG
7.71
Asset Management Industry
- Max
- 5.33
- Q3
- 2.75
- Median
- 1.06
- Q1
- 0.87
- Min
- 0.00
The P/B Ratio is often not a primary valuation metric for the Asset Management industry.
Valuation at a Glance
| Symbol | AON | TPG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 30.13 | 190.31 |
| Forward PEG Ratio (TTM) | 2.89 | 6.50 |
| Price-to-Sales Ratio (P/S, TTM) | 4.68 | 7.09 |
| Price-to-Book Ratio (P/B, TTM) | 10.96 | 7.71 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 29.02 | 74.34 |
| EV-to-EBITDA (TTM) | 18.30 | 86.58 |
| EV-to-Sales (TTM) | 5.76 | 7.54 |