Willis Towers Watson vs Aon Which Is a Better Investment?

Willis Towers Watson and Aon are two major players in the insurance and risk management industry, both offering a wide range of services to clients around the world. Investors looking to diversify their portfolio may consider investing in these stocks. While both companies have experienced steady growth in recent years, there are key differences in their business models and financial performance that potential investors should consider before making a decision. This comparison aims to provide insight into the strengths and weaknesses of each company, helping investors make informed choices about their investments.

Willis Towers Watson or Aon?

When comparing Willis Towers Watson 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 Willis Towers Watson 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. Willis Towers Watson has a dividend yield of 1.1%, while Aon has a dividend yield of 0.86%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Willis Towers Watson reports a 5-year dividend growth of 6.96% year and a payout ratio of -30.64%. 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 Willis Towers Watson P/E ratio at -28.25 and Aon's P/E ratio at 34.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Willis Towers Watson P/B ratio is 4.33 while Aon's P/B ratio is 13.35.

Growth Investors:

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

Retail Investors:

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