Mercer International vs Aon Which Is More Promising?

Mercer International and Aon are two prominent players in the global financial services industry. Mercer International is a leading provider of investment consulting, asset management, and retirement services. Aon, on the other hand, specializes in risk management, insurance, and retirement solutions. Both companies operate in highly competitive markets and have experienced growth in recent years. Investors looking to add diversity to their portfolios may consider investing in these stocks, as they offer exposure to different segments of the financial services sector.

Mercer International or Aon?

When comparing Mercer International 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 Mercer International 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. Mercer International has a dividend yield of 4.45%, while Aon has a dividend yield of 0.73%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mercer International reports a 5-year dividend growth of -9.71% year and a payout ratio of -10.58%. 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 Mercer International P/E ratio at -2.38 and Aon's P/E ratio at 32.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Mercer International P/B ratio is 0.87 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, Mercer International has seen a 5-year revenue growth of 0.34%, while Aon's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mercer International's ROE at -34.17% and Aon's ROE at 87.43%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.67 for Mercer International and $362.35 for Aon. Over the past year, Mercer International's prices ranged from $5.33 to $11.20, with a yearly change of 110.13%. 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.