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AON vs BRK-B

AON
Aon plc
NEUTRAL
Price
$338.69
Market Cap
$73.03B
Sector
Financial Services
AI Confidence
72%
BRK-B
Berkshire Hathaway Inc.
NEUTRAL
Price
$479.75
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
AON
26.88
BRK-B
15.46
Forward P/E
AON
17.8
BRK-B
22.06
P/B Ratio
AON
9.18
BRK-B
0.0
P/S Ratio
AON
4.29
BRK-B
2.79
EV/EBITDA
AON
16.48
BRK-B
-2.12

Profitability

Gross Margin
AON
46.76%
BRK-B
26.15%
Operating Margin
AON
20.36%
BRK-B
32.96%
Profit Margin
AON
15.96%
BRK-B
18.03%
ROE
AON
37.69%
BRK-B
9.81%
ROA
AON
5.59%
BRK-B
5.11%

Growth

Revenue Growth
AON
7.4%
BRK-B
-0.7%
Earnings Growth
AON
34.4%
BRK-B
-2.5%

Financial Health

Debt/Equity
AON
2.15
BRK-B
0.19
Current Ratio
AON
1.06
BRK-B
7.07
Quick Ratio
AON
0.22
BRK-B
6.62

Dividends

Dividend Yield
AON
0.89%
BRK-B
--
Payout Ratio
AON
22.72%
BRK-B
0.0%

AI Verdict

AON NEUTRAL

AON's Advanced Deterministic Scorecard shows a Piotroski F-Score of 4/9, indicating stable but not strong financial health, while the absence of an Altman Z-Score prevents a definitive assessment of bankruptcy risk. The company trades at a premium valuation with a P/E of 26.88 versus sector average of 21.49, yet demonstrates robust profitability (ROE: 37.69%, Operating Margin: 20.36%) and strong earnings growth (YoY: +34.4%). However, weak technical trend (0/100), bearish insider activity, and declining short-term EPS momentum (-20.7% Q/Q) offset these strengths. The stock is trading well above the conservative Graham Number of $102.27 but below the growth-based intrinsic value of $371.7, suggesting the market prices in continued growth.

Strengths
Exceptional return on equity (37.69%) indicating efficient use of shareholder capital
Strong year-over-year earnings growth (34.4%) and revenue growth (7.4%)
Low dividend payout ratio (22.72%) providing sustainability and room for future increases
Risks
Piotroski F-Score of 4 suggests below-average financial strength and limited margin of safety
Very high debt/equity ratio (2.15), above sector average (1.96), increasing financial risk
Extremely low quick ratio (0.22) indicating potential liquidity concerns in the short term
BRK-B NEUTRAL

The deterministic health profile is weak, highlighted by a Piotroski F-Score of 3/9, indicating deteriorating operational efficiency and profitability trends. While the company maintains a fortress balance sheet with a Debt/Equity ratio of 0.19 and a Current Ratio of 7.07, the stock is trading at a significant premium to its growth-based intrinsic value of $217.21. Negative YoY revenue and earnings growth, coupled with a bearish technical trend, offset the positive analyst sentiment and long-term historical performance.

Strengths
Exceptional liquidity with a Current Ratio of 7.07
Very low leverage (Debt/Equity 0.19)
Strong operating margins at 32.96%
Risks
Significant overvaluation relative to intrinsic value ($479.75 vs $217.21)
Negative YoY earnings growth (-2.50%) and revenue growth (-0.70%)
Weak Piotroski F-Score (3/9) suggesting declining financial health trends

Compare Another Pair

AON vs BRK-B: Head-to-Head Comparison

This page compares Aon plc (AON) and Berkshire Hathaway Inc. (BRK-B) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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