Critical Contrast: TWFG (NASDAQ:TWFG) vs. AON (NYSE:AON)

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

Analyst Ratings

This is a summary of current ratings and price targets for TWFG and AON, as provided by MarketBeat.

	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 presently has a consensus target price of $31.14, indicating a potential upside of 11.86%. AON has a consensus target price of $362.06, indicating a potential upside of 2.69%. Given TWFG’s stronger consensus rating and higher possible upside, analysts plainly believe TWFG is more favorable than AON.

Earnings and Valuation

This table compares TWFG and AON”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TWFG	$185.45 million	2.22	$26.10 million	N/A	N/A
AON	$14.93 billion	5.11	$2.56 billion	$11.85	29.75

AON has higher revenue and earnings than TWFG.

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 and 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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.