Analyzing AON (NYSE:AON) & TWFG (NASDAQ:TWFG)

TWFG (NASDAQ:TWFG) and AON (NYSE:AON) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Profitability

This table compares TWFG and AON’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TWFG	N/A	N/A	N/A
AON	16.32%	107.43%	7.12%

Institutional & Insider Ownership

86.1% of AON shares are owned by institutional investors. 1.3% of AON shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for TWFG and AON, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TWFG	0	3	6	0	2.67
AON	1	11	4	0	2.19

TWFG currently has a consensus target price of $31.14, suggesting a potential upside of 6.54%. AON has a consensus target price of $362.06, suggesting a potential upside of 1.00%. Given TWFG’s stronger consensus rating and higher possible upside, equities research analysts clearly believe TWFG is more favorable than AON.

Valuation & Earnings

This table compares TWFG and AON”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$185.45 million	2.33	$26.10 million	N/A	N/A
AON	$14.93 billion	5.19	$2.56 billion	$11.85	30.25

AON has higher revenue and earnings than TWFG.

Summary

AON beats TWFG on 8 of the 11 factors compared between the two stocks.

About TWFG

TWFG, Inc. operates an independent distribution platform for personal and commercial insurance products in the United States. Its personal and commercial insurance products include auto, home, renters, life, health, motorcycle, umbrella, boat, recreational vehicle, flood, wind, event, luxury item, general liability, property, business auto, workers’ compensation, business owner policy, and professional liability insurance products, as well as commercial bonds and group benefits. The company was founded in 2001 and is based in The Woodlands, Texas. TWFG, Inc. operates as a subsidiary of Bunch Family Holdings, LLC.

About AON

Aon plc, a professional services firm, provides a range of risk and human capital solutions worldwide. It offers commercial risk solutions, including retail brokerage, specialty solutions, global risk consulting and captives management, and affinity programs; and health solutions, such as health and benefits brokerages, and health care exchanges. The company also provides treaty and facultative reinsurance, as well as insurance-linked securities, capital raising, strategic advice, restructuring, and mergers and acquisitions services; and corporate finance advisory services. In addition, it offers strategic design consulting services on their retirement programs, actuarial services, and risk management services; and advice services on developing and maintaining investment programs across various plan types, including defined benefit plans, defined contribution plans, endowments, and foundations for public and private companies, and other institutions. Aon plc was founded in 1919 and is headquartered in Dublin, Ireland.