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.
Marsh & McLennan Companies (NYSE:MMC) and Arthur J. Gallagher & Co. (NYSE:AJG) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, media sentiment, community ranking, dividends and earnings.
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.
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.
88.0% of Marsh & McLennan Companies shares are held by institutional investors. Comparatively, 85.5% of Arthur J. Gallagher & Co. shares are held by institutional investors. 0.3% of Marsh & McLennan Companies shares are held by company insiders. Comparatively, 1.6% of Arthur J. Gallagher & Co. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Arthur J. Gallagher & Co. received 49 more outperform votes than Marsh & McLennan Companies when rated by MarketBeat users. However, 61.66% of users gave Marsh & McLennan Companies an outperform vote while only 59.31% of users gave Arthur J. Gallagher & Co. an outperform vote.
Marsh & McLennan Companies has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Arthur J. Gallagher & Co. has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
In the previous week, Marsh & McLennan Companies had 5 more articles in the media than Arthur J. Gallagher & Co.. MarketBeat recorded 23 mentions for Marsh & McLennan Companies and 18 mentions for Arthur J. Gallagher & Co.. Marsh & McLennan Companies' average media sentiment score of 1.16 beat Arthur J. Gallagher & Co.'s score of 1.01 indicating that Marsh & McLennan Companies is being referred to more favorably in the media.
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 an annual dividend of $2.40 per share and has a dividend yield of 0.8%. Marsh & McLennan Companies pays out 40.1% of its earnings in the form of a dividend. Arthur J. Gallagher & Co. pays out 45.7% 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 has increased its dividend for 15 consecutive years and Arthur J. Gallagher & Co. has increased its dividend for 14 consecutive years. Marsh & McLennan Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Marsh & McLennan Companies presently has a consensus price target of $228.60, indicating a potential upside of 6.21%. Arthur J. Gallagher & Co. has a consensus price target of $304.07, indicating a potential upside of 3.00%. Given Marsh & McLennan Companies' higher possible upside, analysts plainly believe Marsh & McLennan Companies is more favorable than Arthur J. Gallagher & Co..
Summary
Marsh & McLennan Companies beats Arthur J. Gallagher & Co. on 15 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 1/19/2025 by MarketBeat.com Staff
