Aon vs Willis Towers Watson Which Performs Better?

Aon and Willis Towers Watson are two prominent companies in the insurance and professional services industries. Both firms have a strong global presence and offer a wide range of services to clients around the world. Investors often compare the stocks of these two companies to assess their performance and growth potential. Aon has historically been seen as more focused on insurance brokerage services, while Willis Towers Watson has a broader portfolio of offerings including risk management and consulting services. Investors should carefully analyze the financial health, market positioning, and growth prospects of both companies before making an investment decision.

Aon or Willis Towers Watson?

When comparing Aon and Willis Towers Watson, 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 Aon and Willis Towers Watson.

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. Aon has a dividend yield of 0.86%, while Willis Towers Watson has a dividend yield of 1.1%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aon reports a 5-year dividend growth of 4.18% year and a payout ratio of 22.13%. On the other hand, Willis Towers Watson reports a 5-year dividend growth of 6.96% year and a payout ratio of -30.64%.

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 Aon P/E ratio at 34.21 and Willis Towers Watson's P/E ratio at -28.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aon P/B ratio is 13.35 while Willis Towers Watson's P/B ratio is 4.33.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aon has seen a 5-year revenue growth of 0.50%, while Willis Towers Watson's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aon's ROE at 87.43% and Willis Towers Watson's ROE at -12.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $382.76 for Aon and $314.54 for Willis Towers Watson. Over the past year, Aon's prices ranged from $268.06 to $389.21, with a yearly change of 45.20%. Willis Towers Watson's prices fluctuated between $234.01 and $320.77, with a yearly change of 37.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.