AJG vs. MMC, AON, BRO, EHTH, WTW, ERIE, RYAN, EQH, ACT, and CRVL
Should you be buying Arthur J. Gallagher & Co. stock or one of its competitors? The main competitors of Arthur J. Gallagher & Co. include Marsh & McLennan Companies (MMC), AON (AON), Brown & Brown (BRO), eHealth (EHTH), Willis Towers Watson Public (WTW), Erie Indemnity (ERIE), Ryan Specialty (RYAN), Equitable (EQH), Enact (ACT), and CorVel (CRVL). These companies are all part of the "insurance agents, brokers, & service" industry.
Arthur J. Gallagher & Co. (NYSE:AJG) and Marsh & McLennan Companies (NYSE:MMC) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their media sentiment, profitability, institutional ownership, valuation, earnings, dividends, community ranking, analyst recommendations and risk.
Arthur J. Gallagher & Co. pays an annual dividend of $2.40 per share and has a dividend yield of 0.9%. Marsh & McLennan Companies pays an annual dividend of $2.84 per share and has a dividend yield of 1.4%. Arthur J. Gallagher & Co. pays out 48.6% of its earnings in the form of a dividend. Marsh & McLennan Companies pays out 36.0% 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. Marsh & McLennan Companies is clearly the better dividend stock, given its higher yield and lower payout ratio.
Arthur J. Gallagher & Co. received 40 more outperform votes than Marsh & McLennan Companies when rated by MarketBeat users. However, 62.83% of users gave Marsh & McLennan Companies an outperform vote while only 59.96% of users gave Arthur J. Gallagher & Co. an outperform vote.
Arthur J. Gallagher & Co. currently has a consensus price target of $255.71, indicating a potential upside of 0.94%. Marsh & McLennan Companies has a consensus price target of $210.27, indicating a potential upside of 1.22%. Given Marsh & McLennan Companies' higher possible upside, analysts plainly believe Marsh & McLennan Companies is more favorable than Arthur J. Gallagher & Co..
In the previous week, Arthur J. Gallagher & Co. had 1 more articles in the media than Marsh & McLennan Companies. MarketBeat recorded 10 mentions for Arthur J. Gallagher & Co. and 9 mentions for Marsh & McLennan Companies. Marsh & McLennan Companies' average media sentiment score of 1.18 beat Arthur J. Gallagher & Co.'s score of 0.97 indicating that Marsh & McLennan Companies is being referred to more favorably in the news media.
Arthur J. Gallagher & Co. has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
85.5% of Arthur J. Gallagher & Co. shares are owned by institutional investors. Comparatively, 88.0% of Marsh & McLennan Companies shares are owned by institutional investors. 1.6% of Arthur J. Gallagher & Co. shares are owned by company insiders. Comparatively, 0.3% of Marsh & McLennan Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Marsh & McLennan Companies has a net margin of 16.84% compared to Arthur J. Gallagher & Co.'s net margin of 10.27%. Marsh & McLennan Companies' return on equity of 34.14% beat Arthur J. Gallagher & Co.'s return on equity.
Marsh & McLennan Companies has higher revenue and earnings than Arthur J. Gallagher & Co.. Marsh & McLennan Companies is trading at a lower price-to-earnings ratio than Arthur J. Gallagher & Co., indicating that it is currently the more affordable of the two stocks.
Summary
Marsh & McLennan Companies beats Arthur J. Gallagher & Co. on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AJG and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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