AON (NYSE:AON – Get Free Report) and Brighthouse Financial (NASDAQ:BHF – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Institutional and Insider Ownership
86.1% of AON shares are owned by institutional investors. Comparatively, 81.2% of Brighthouse Financial shares are owned by institutional investors. 1.0% of AON shares are owned by company insiders. Comparatively, 1.6% of Brighthouse Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and target prices for AON and Brighthouse Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AON | 2 | 6 | 12 | 0 | 2.50 |
| Brighthouse Financial | 0 | 7 | 0 | 0 | 2.00 |
AON currently has a consensus price target of $367.59, indicating a potential upside of 21.13%. Brighthouse Financial has a consensus price target of $61.25, indicating a potential upside of 34.88%. Given Brighthouse Financial’s higher probable upside, analysts plainly believe Brighthouse Financial is more favorable than AON.
Earnings and Valuation
This table compares AON and Brighthouse Financial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AON | $17.58 billion | 3.66 | $3.69 billion | $18.14 | 16.73 |
| Brighthouse Financial | $6.77 billion | 0.39 | $433.00 million | $12.53 | 3.62 |
AON has higher revenue and earnings than Brighthouse Financial. Brighthouse Financial is trading at a lower price-to-earnings ratio than AON, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares AON and Brighthouse Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AON | 22.27% | 42.13% | 7.57% |
| Brighthouse Financial | 12.49% | 17.24% | 0.45% |
Volatility and Risk
AON has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Brighthouse Financial has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
Summary
AON beats Brighthouse Financial on 11 of the 14 factors compared between the two stocks.
About AON
Aon Plc engages in the provision of risk, health, and wealth solutions. It focuses on risk capital including claim management, reinsurance, risk analysis, management, retention, and transfer; and human capital involving analytics, health and benefits, investments, pensions and retirement, talent and rewards, and workplace wellbeing. The company was founded in 1982 and is headquartered in Dublin, Ireland.
About Brighthouse Financial
Brighthouse Financial, Inc. provides annuity and life insurance products in the United States. It operates through three segments: Annuities, Life, and Run-off. The Annuities segment consists of variable, fixed, index-linked, and income annuities for contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security. The Life segment offers term, universal, whole, and variable life products for policyholders’ needs for financial security and protected wealth transfer. The Run-off segment manages structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, funding agreements, and universal life with secondary guarantees. Brighthouse Financial, Inc. was founded in 1863 and is headquartered in Charlotte, North Carolina.
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