Aon plc (AON) vs Accelerant Holdings (ARX)

Aon plc and Accelerant Holdings are both Insurance Brokers companies. Aon plc is the larger, with a market value of $59.0B against $4.3B — 13.7× the size. Accelerant Holdings has negative trailing earnings, so its P/E is not meaningful; Aon plc trades at 15.2×. Accelerant Holdings grew revenue faster over the last twelve months: 54.6% against 4.92%. Aon plc has the higher net margin (22.3% vs −119.3%) and the higher return on invested capital (12.3% vs 0.00%). Across the 19 metrics below, Aon plc leads on 11 and Accelerant Holdings on 8.

Valuation

Metric AON ARX Insurance Brokers median
P/E 15.25 n/m 25.35
P/S 3.37 3.76 2.10
P/B 6.12 5.80 2.81
Price to free cash flow 18.25 2,396.47 18.44
EV/EBITDA 13.19 9.84 12.36
EV/Sales 4.16 2.42 3.00
Earnings yield 6.56% (33.67%) 2.64%
Free cash flow yield 5.48% 0.04% 2.30%

Profitability

Metric AON ARX Insurance Brokers median
Gross margin 48.57% 100.00% 42.95%
Operating margin 26.48% 21.15% 15.37%
Net margin 22.27% (119.27%) 8.77%
Free cash flow margin 18.48% 0.16% 3.89%
Return on equity 44.24% (369.41%) 0.00%
Return on assets 7.29% (16.63%) 2.23%
Return on invested capital 12.33% 0.00% 5.27%

Growth

Metric AON ARX Insurance Brokers median
Revenue growth (TTM) 4.92% 54.55% 7.09%
EPS growth (last fiscal year) 36.27% (6,630.08%) —
Revenue growth, 5-year CAGR 9.20% — 9.30%
Net income growth, 5-year CAGR 13.42% — 0.00%

Health

Metric AON ARX Insurance Brokers median
Debt to equity 1.55 0.16 0.19
Current ratio 1.50 1.51 1.55
Net debt to EBITDA 2.65 (7.35) 0.89

Dividend

Metric AON ARX Insurance Brokers median
Dividend yield 0.84% — 1.36%
Payout ratio 0.18 — 0.00

Size

Metric AON ARX Insurance Brokers median
Market cap 58.96b 4.29b 1.44b

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