AJG vs. MMC, AON, BRO, EHTH, WTW, RYAN, ERIE, 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), Ryan Specialty (RYAN), Erie Indemnity (ERIE), 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 better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, community ranking, valuation, analyst recommendations, dividends, media sentiment, earnings and risk.
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.
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. 0.4% 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 stock will outperform the market over the long term.
In the previous week, Arthur J. Gallagher & Co. had 14 more articles in the media than Marsh & McLennan Companies. MarketBeat recorded 44 mentions for Arthur J. Gallagher & Co. and 30 mentions for Marsh & McLennan Companies. Marsh & McLennan Companies' average media sentiment score of 1.47 beat Arthur J. Gallagher & Co.'s score of 1.19 indicating that Marsh & McLennan Companies is being referred to more favorably in the media.
Arthur J. Gallagher & Co. received 50 more outperform votes than Marsh & McLennan Companies when rated by MarketBeat users. However, 61.28% of users gave Marsh & McLennan Companies an outperform vote while only 58.99% of users gave Arthur J. Gallagher & Co. an outperform vote.
Marsh & McLennan Companies presently has a consensus target price of $241.93, suggesting a potential upside of 6.48%. Arthur J. Gallagher & Co. has a consensus target price of $315.33, suggesting a potential downside of 4.85%. Given Marsh & McLennan Companies' higher possible upside, equities analysts clearly believe Marsh & McLennan Companies is more favorable than Arthur J. Gallagher & Co..
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 an annual dividend of $2.60 per share and has a dividend yield of 0.8%. Marsh & McLennan Companies pays out 40.0% of its earnings in the form of a dividend. Arthur J. Gallagher & Co. pays out 39.9% 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 15 consecutive years.
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 beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Arthur J. Gallagher & Co. has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.
Summary
Marsh & McLennan Companies beats Arthur J. Gallagher & Co. on 12 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 5/3/2025 by MarketBeat.com Staff
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