eHealth (NASDAQ: EHTH) and Aon PLC (NYSE:AON) are both financials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitabiliy and dividends.

Profitability

This table compares eHealth and Aon PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
eHealth 42.34% 140.76% 110.78%
Aon PLC 12.23% 32.34% 6.87%

Dividends

Aon PLC pays an annual dividend of $1.44 per share and has a dividend yield of 1.0%. eHealth does not pay a dividend. Aon PLC pays out 28.2% of its earnings in the form of a dividend. Aon PLC has raised its dividend for 5 consecutive years.

Institutional and Insider Ownership

93.5% of eHealth shares are owned by institutional investors. Comparatively, 86.1% of Aon PLC shares are owned by institutional investors. 3.3% of eHealth shares are owned by insiders. Comparatively, 0.9% of Aon PLC shares are owned by 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.

Risk & Volatility

eHealth has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Aon PLC has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Valuation and Earnings

This table compares eHealth and Aon PLC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
eHealth $192.05 million 1.79 $7.13 million $0.55 33.82
Aon PLC $11.71 billion 3.08 $2.47 billion $5.11 26.89

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

Analyst Recommendations

This is a summary of recent ratings for eHealth and Aon PLC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eHealth 0 1 3 0 2.75
Aon PLC 1 9 4 0 2.21

eHealth presently has a consensus price target of $17.50, indicating a potential downside of 5.91%. Aon PLC has a consensus price target of $130.70, indicating a potential downside of 4.88%. Given Aon PLC’s higher probable upside, analysts clearly believe Aon PLC is more favorable than eHealth.

Summary

eHealth beats Aon PLC on 9 of the 17 factors compared between the two stocks.

eHealth Company Profile

eHealth, Inc. provides a private online source of health insurance for individuals, families and small businesses. The Company is the parent company of eHealthInsurance, a private health insurance exchange where individuals, families and small businesses can compare health insurance products from various insurers side-by-side, and purchase and enroll in coverage online through its Websites (www.eHealth.com, www.eHealthInsurance.com, www.eHealthMedicare.com, www.Medicare.com and www.PlanPrescriber.com) or telephonically through its customer care centers. The Company also offers various online and pharmacy-based tools to help seniors navigate Medicare health insurance options, choose the right plan, and enroll in plans online or telephonically. It markets the availability of individual and family, small business and ancillary health insurance plans of various insurance carriers through its e-commerce platforms (www.eHealth.com and www.eHealthInsurance.com).

Aon PLC Company Profile

Aon plc (Aon) is a global provider of risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing, delivering distinctive client value via risk management and workforce productivity solutions. The Company operates in two segments: Risk Solutions and Human Resource (HR) Solutions. On April 2, 2012, the Company completed the reorganization of the corporate structure of the group of companies controlled by its predecessor, Aon Corporation, as holding company of the Aon group, pursuant to which Aon Corporation merged with one of its indirect, wholly owned subsidiaries and Aon plc became the parent company of the Aon group. In July 2012, ABN Amro Bank NV sold its insurance unit to Aon.

Receive News & Ratings for eHealth Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for eHealth Inc. and related companies with MarketBeat.com's FREE daily email newsletter.