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 stock? We will contrast the two companies based on the strength of their institutional ownership, community ranking, risk, dividends, earnings, valuation, media sentiment, profitability and analyst recommendations.
Marsh & McLennan Companies has a net margin of 16.60% compared to Arthur J. Gallagher & Co.'s net margin of 12.70%. Marsh & McLennan Companies' return on equity of 32.60% beat Arthur J. Gallagher & Co.'s return on equity.
85.5% of Arthur J. Gallagher & Co. shares are held by institutional investors. Comparatively, 88.0% of Marsh & McLennan Companies shares are held by institutional investors. 1.6% of Arthur J. Gallagher & Co. shares are held by insiders. Comparatively, 0.3% of Marsh & McLennan Companies shares are held 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.
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.
In the previous week, Arthur J. Gallagher & Co. had 10 more articles in the media than Marsh & McLennan Companies. MarketBeat recorded 44 mentions for Arthur J. Gallagher & Co. and 34 mentions for Marsh & McLennan Companies. Marsh & McLennan Companies' average media sentiment score of 1.45 beat Arthur J. Gallagher & Co.'s score of 1.23 indicating that Marsh & McLennan Companies is being referred to more favorably in the news media.
Arthur J. Gallagher & Co. received 50 more outperform votes than Marsh & McLennan Companies when rated by MarketBeat users. However, 61.60% of users gave Marsh & McLennan Companies an outperform vote while only 59.13% of users gave Arthur J. Gallagher & Co. an outperform vote.
Arthur J. Gallagher & Co. currently has a consensus target price of $313.20, suggesting a potential downside of 7.21%. Marsh & McLennan Companies has a consensus target price of $233.41, suggesting a potential downside of 1.42%. Given Marsh & McLennan Companies' higher possible upside, analysts clearly believe Marsh & McLennan Companies is more favorable than Arthur J. Gallagher & Co..
Arthur J. Gallagher & Co. pays an annual dividend of $2.60 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 1.4%. Arthur J. Gallagher & Co. pays out 39.9% of its earnings in the form of a dividend. Marsh & McLennan Companies pays out 39.8% 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. Arthur J. Gallagher & Co. has increased its dividend for 15 consecutive years and Marsh & McLennan Companies has increased its dividend for 15 consecutive years. Marsh & McLennan Companies is clearly the better dividend stock, given its higher yield and lower payout ratio.
Arthur J. Gallagher & Co. has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Summary
Marsh & McLennan Companies beats Arthur J. Gallagher & Co. on 13 of the 20 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 3/26/2025 by MarketBeat.com Staff
