Alight vs Aon Which Outperforms?

Alight Inc. and Aon Plc are two leading companies in the financial services industry with a focus on providing innovative solutions to their clients. Alight specializes in HR solutions and cloud-based benefits administration, while Aon is a global professional services firm offering a wide range of risk, retirement, and health solutions. Both companies have a strong track record of success and have generated significant interest among investors. In this comparison, we will analyze the stock performance and financial outlook of Alight and Aon to help investors make informed decisions.

Alight or Aon?

When comparing Alight and Aon, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Alight and Aon.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Alight has a dividend yield of 0.54%, while Aon has a dividend yield of 0.73%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alight reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Aon reports a 5-year dividend growth of 4.18% year and a payout ratio of 22.13%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Alight P/E ratio at -16.23 and Aon's P/E ratio at 32.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alight P/B ratio is 0.93 while Aon's P/B ratio is 12.63.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alight has seen a 5-year revenue growth of 0.31%, while Aon's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alight's ROE at -5.58% and Aon's ROE at 87.43%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.36 for Alight and $358.96 for Aon. Over the past year, Alight's prices ranged from $6.15 to $10.38, with a yearly change of 68.78%. Aon's prices fluctuated between $268.06 and $395.33, with a yearly change of 47.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.