AON vs HIG

For growth investors, Aon plc (AON) is the stronger pick with 9.

4% revenue growth year-over-year, versus 7. 1% for The Hartford Financial Services Group, Inc. (HIG). The Hartford Financial Services Group, Inc. (HIG) offers the better valuation at 10. 0x trailing P/E (10. 1x forward), making it the more compelling value choice. Analysts rate Aon plc (AON) a "Buy" — based on 38 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, The Hartford Financial Services Group, Inc.

(HIG) is the cheapest at 10. 0x versus Aon plc at 18. 4x. On forward P/E, The Hartford Financial Services Group, Inc. is actually cheaper at 10. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Hartford Financial Services Group, Inc. wins at 0. 44x versus Aon plc's 1. 10x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, The Hartford Financial Services Group, Inc.

(HIG) delivered a total return of +112. 7%, compared to +26. 2% for Aon plc (AON). Over 10 years, the gap is even starker: HIG returned +233. 5% versus AON's +219. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Aon plc (AON) is the lower-risk stock at 0.

10β versus The Hartford Financial Services Group, Inc. 's 0. 29β — meaning HIG is approximately 204% more volatile than AON relative to the S&P 500. On balance sheet safety, The Hartford Financial Services Group, Inc. (HIG) carries a lower debt/equity ratio of 23% versus 173% for Aon plc — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Aon plc (AON) is pulling ahead at 9.

4% versus 7. 1% for The Hartford Financial Services Group, Inc. (HIG). On earnings-per-share growth, the picture is similar: Aon plc grew EPS 36. 3% year-over-year, compared to 28. 7% for The Hartford Financial Services Group, Inc.. Over a 3-year CAGR, AON leads at 11. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Aon plc (AON) is the more profitable company, earning 21.

5% net margin versus 13. 6% for The Hartford Financial Services Group, Inc. — meaning it keeps 21. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AON leads at 25. 3% versus 16. 8% for HIG. At the gross margin level — before operating expenses — AON leads at 47. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, The Hartford Financial Services Group, Inc. (HIG) is the more undervalued stock at a PEG of 0. 44x versus Aon plc's 1. 10x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, The Hartford Financial Services Group, Inc. (HIG) trades at 10. 1x forward P/E versus 16. 5x for Aon plc — 6. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AON: 29. 0% to $404. 40.

All stocks in this comparison pay dividends.

The Hartford Financial Services Group, Inc. (HIG) offers the highest yield at 1. 6%, versus 0. 9% for Aon plc (AON).

For long-horizon retirement investors, Aon plc (AON) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

10), 0. 9% yield, +219. 8% 10Y return). Both have compounded well over 10 years (AON: +219. 8%, HIG: +233. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: AON is a mid-cap quality compounder stock; HIG is a mid-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.