AJG vs. MMC, AON, BRO, EHTH, WTW, ERIE, RYAN, EQH, CRVL, and ACT
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), CorVel (CRVL), and Enact (ACT). These companies are all part of the "insurance agents, brokers, & service" industry.
Arthur J. Gallagher & Co. vs.
Arthur J. Gallagher & Co. (NYSE:AJG) and Marsh & McLennan Companies (NYSE:MMC) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their community ranking, dividends, earnings, media sentiment, analyst recommendations, institutional ownership, profitability, valuation and risk.
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 insiders. Comparatively, 0.4% of Marsh & McLennan Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
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.
Arthur J. Gallagher & Co. currently has a consensus target price of $289.14, suggesting a potential downside of 1.09%. Marsh & McLennan Companies has a consensus target price of $225.33, suggesting a potential upside of 2.09%. Given Marsh & McLennan Companies' higher possible upside, analysts plainly believe Marsh & McLennan Companies is more favorable than Arthur J. Gallagher & Co..
Arthur J. Gallagher & Co. has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.
Arthur J. Gallagher & Co. pays an annual dividend of $2.40 per share and has a dividend yield of 0.8%. Marsh & McLennan Companies pays an annual dividend of $3.26 per share and has a dividend yield of 1.5%. Arthur J. Gallagher & Co. pays out 45.7% of its earnings in the form of a dividend. Marsh & McLennan Companies pays out 40.1% 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. Arthur J. Gallagher & Co. has raised its dividend for 14 consecutive years and Marsh & McLennan Companies has raised its dividend for 15 consecutive years. Marsh & McLennan Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Marsh & McLennan Companies had 5 more articles in the media than Arthur J. Gallagher & Co.. MarketBeat recorded 27 mentions for Marsh & McLennan Companies and 22 mentions for Arthur J. Gallagher & Co.. Arthur J. Gallagher & Co.'s average media sentiment score of 1.47 beat Marsh & McLennan Companies' score of 1.27 indicating that Arthur J. Gallagher & Co. is being referred to more favorably in the media.
Arthur J. Gallagher & Co. received 48 more outperform votes than Marsh & McLennan Companies when rated by MarketBeat users. However, 61.79% of users gave Marsh & McLennan Companies an outperform vote while only 59.44% of users gave Arthur J. Gallagher & Co. an outperform vote.
Marsh & McLennan Companies has a net margin of 16.82% compared to Arthur J. Gallagher & Co.'s net margin of 10.40%. Marsh & McLennan Companies' return on equity of 32.65% beat Arthur J. Gallagher & Co.'s return on equity.
Summary
Marsh & McLennan Companies beats Arthur J. Gallagher & Co. on 14 of the 21 factors compared between the two stocks.
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New MarketBeat Followers Over Time
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Media Sentiment Over Time
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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This page (NYSE:AJG) was last updated on 11/20/2024 by MarketBeat.com Staff
