Comparing Tryg A/S (OTCMKTS:TGVSF) and AON (NYSE:AON)

AON (NYSE:AON) and Tryg A/S (OTCMKTS:TGVSF) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Dividends

AON pays an annual dividend of $3.28 per share and has a dividend yield of 0.9%. Tryg A/S pays an annual dividend of $27.00 per share and has a dividend yield of 117.0%. AON pays out 18.1% of its earnings in the form of a dividend. Tryg A/S pays out 61.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares AON and Tryg A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AON	22.27%	42.13%	7.57%
Tryg A/S	N/A	N/A	N/A

Valuation and Earnings

This table compares AON and Tryg A/S”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AON	$17.18 billion	4.38	$3.69 billion	$18.14	19.56
Tryg A/S	N/A	N/A	N/A	$43.70	0.53

AON has higher revenue and earnings than Tryg A/S. Tryg A/S is trading at a lower price-to-earnings ratio than AON, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

86.1% of AON shares are held by institutional investors. Comparatively, 11.9% of Tryg A/S shares are held by institutional investors. 1.0% of AON shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for AON and Tryg A/S, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AON	0	5	12	0	2.71
Tryg A/S	0	0	0	0	0.00

AON presently has a consensus price target of $412.62, suggesting a potential upside of 16.28%. Given AON’s stronger consensus rating and higher probable upside, analysts plainly believe AON is more favorable than Tryg A/S.

Summary

AON beats Tryg A/S on 11 of the 13 factors compared between the two stocks.

About AON

Aon Plc engages in the provision of risk, health, and wealth solutions. It focuses on risk capital including claim management, reinsurance, risk analysis, management, retention, and transfer; and human capital involving analytics, health and benefits, investments, pensions and retirement, talent and rewards, and workplace wellbeing. The company was founded in 1982 and is headquartered in Dublin, Ireland.

About Tryg A/S

Tryg A/S, together with its subsidiaries, provides insurance products and services for private and corporate customers, and small and medium-sized businesses in Denmark, Sweden, and Norway. It operates through Private, Commercial, Corporate, and Other segments. The company provides car, fire and contents, house, accident, travel, motorcycles, pet, health, property, liability, worker's compensation, transportation, group life, boat insurance products, tourist assistance, and credit and guarantee insurance products, as well as marine, aviation and cargo insurance. It sells its products through call centers, online, sales agents, franchisees, car dealers, real estate agents, and insurance brokers under the Tryg Forsikring, Alka, Enter Forsikring, Trygg-Hansa, Tryg, Tryg Garanti, Atlaantica, Bilsport & MC, and Moderna Djurförsäkringar brand names. The company was founded in 1731 and is headquartered in Ballerup, Denmark.