Contrasting AON (NYSE:AON) and Kingstone Companies (NASDAQ:KINS)

AON (NYSE:AON) and Kingstone Companies (NASDAQ:KINS) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Dividends

AON pays an annual dividend of $3.28 per share and has a dividend yield of 1.0%. Kingstone Companies pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. AON pays out 18.0% of its earnings in the form of a dividend. Kingstone Companies pays out 8.4% 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. Kingstone Companies is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares AON and Kingstone Companies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AON	$17.68 billion	4.02	$3.69 billion	$18.26	18.35
Kingstone Companies	$249.60 million	1.33	$40.77 million	$2.87	7.99

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

Insider and Institutional Ownership

86.1% of AON shares are held by institutional investors. Comparatively, 14.9% of Kingstone Companies shares are held by institutional investors. 1.0% of AON shares are held by company insiders. Comparatively, 4.3% of Kingstone Companies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

AON has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Kingstone Companies has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Profitability

This table compares AON and Kingstone Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AON	22.24%	40.46%	7.20%
Kingstone Companies	16.83%	34.79%	9.28%

Analyst Recommendations

This is a summary of current recommendations and price targets for AON and Kingstone Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AON	3	6	13	0	2.45
Kingstone Companies	0	1	1	0	2.50

AON currently has a consensus price target of $369.12, indicating a potential upside of 10.17%. Given AON’s higher probable upside, equities analysts clearly believe AON is more favorable than Kingstone Companies.

Summary

AON beats Kingstone Companies on 11 of the 16 factors compared between the two stocks.

About AON

Aon plc is a global professional services firm that helps organizations manage risk and make decisions about their people and finances. Its services include insurance brokerage, risk consulting, reinsurance solutions, employee benefits consulting and retirement and investment advisory services. The company serves businesses and institutions across a broad range of industries and geographies. Aon was formed in 1982 as Ryan Insurance Group and adopted the Aon name in 1987. It is headquartered in Dublin, Ireland, and operates internationally.

About Kingstone Companies

Kingstone Companies, Inc. is a holding company whose principal operating subsidiary, Kingstone Insurance Company, provides property and casualty insurance. The company focuses primarily on personal insurance for homeowners and other property owners. Its products include homeowners, dwelling fire, renters and personal umbrella coverage, as well as commercial insurance for businesses. Kingstone distributes its policies through independent agents and brokers. The company’s insurance operations are concentrated in New York, where it serves individuals and businesses with coverage tailored to the regional market.