WallStSmart

Aon PLC (AON)vsMarsh & McLennan Companies Inc (MMC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Marsh & McLennan Companies Inc generates 54% more annual revenue ($26.45B vs $17.18B). AON leads profitability with a 21.5% profit margin vs 15.6%. MMC appears more attractively valued with a PEG of 2.00. AON earns a higher WallStSmart Score of 68/100 (B-).

AON

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.5Value: 7.3Quality: 4.3
Piotroski: 5/9Altman Z: 0.82

MMC

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 8.0Value: 7.3Quality: 4.8
Piotroski: 3/9Altman Z: 1.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AONUndervalued (+62.1%)

Margin of Safety

+62.1%

Fair Value

$818.53

Current Price

$327.03

$491.50 discount

UndervaluedFair: $818.53Overvalued
MMCSignificantly Overvalued (-222.6%)

Margin of Safety

-222.6%

Fair Value

$56.64

Current Price

$182.70

$126.06 premium

UndervaluedFair: $56.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AON6 strengths · Avg: 9.3/10
Return on EquityProfitability
46.9%10/10

Every $100 of equity generates 47 in profit

Operating MarginProfitability
31.4%10/10

Strong operational efficiency at 31.4%

EPS GrowthGrowth
138.3%10/10

Earnings expanding 138.3% YoY

Market CapQuality
$69.99B9/10

Large-cap with strong market position

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Free Cash FlowQuality
$1.32B8/10

Generating 1.3B in free cash flow

MMC3 strengths · Avg: 8.7/10
Market CapQuality
$89.82B9/10

Large-cap with strong market position

Return on EquityProfitability
28.7%9/10

Every $100 of equity generates 29 in profit

Free Cash FlowQuality
$2.30B8/10

Generating 2.3B in free cash flow

Areas to Watch

AON3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
3.7%4/10

3.7% revenue growth

PEG RatioValuation
2.522/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.822/10

Distress zone — elevated risk

MMC4 concerns · Avg: 3.8/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Altman Z-ScoreHealth
1.674/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AON

The strongest argument for AON centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 21.5% and operating margin at 31.4%.

Bull Case : MMC

The strongest argument for MMC centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.6% and operating margin at 19.2%. Revenue growth of 11.5% demonstrates continued momentum.

Bear Case : AON

The primary concerns for AON are Revenue Growth, PEG Ratio, Altman Z-Score.

Bear Case : MMC

The primary concerns for MMC are PEG Ratio, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

AON profiles as a value stock while MMC is a mature play — different risk/reward profiles.

AON carries more volatility with a beta of 0.83 — expect wider price swings.

MMC is growing revenue faster at 11.5% — sustainability is the question.

MMC generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

AON scores higher overall (68/100 vs 62/100), backed by strong 21.5% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Aon PLC

FINANCIAL SERVICES · INSURANCE BROKERS · USA

Aon plc is a multinational professional services firm that sells a range of financial risk-mitigation products, including insurance, pension administration, and health-insurance plans.

Marsh & McLennan Companies Inc

FINANCIAL SERVICES · INSURANCE BROKERS · USA

Marsh McLennan (formerly known as Marsh & McLennan Companies) is a global professional services firm, headquartered in New York City with businesses in insurance brokerage, risk management, reinsurance services, talent management, investment advisory, and management consulting. Its four main operating companies are Marsh, Guy Carpenter, Mercer, and Oliver Wyman.

Want to dig deeper into these stocks?