AJG vs. AON, BRO, MMC, WTW, ERIE, RYAN, TFC, MET, AIG, and MFG
Should you be buying Arthur J. Gallagher & Co. stock or one of its competitors? The main competitors of Arthur J. Gallagher & Co. include AON (AON), Brown & Brown (BRO), Marsh & McLennan Companies (MMC), Willis Towers Watson Public (WTW), Erie Indemnity (ERIE), Ryan Specialty (RYAN), Truist Financial (TFC), MetLife (MET), American International Group (AIG), and Mizuho Financial Group (MFG). These companies are all part of the "finance" sector.
Arthur J. Gallagher & Co. (NYSE:AJG) and AON (NYSE:AON) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings, community ranking, valuation and media sentiment.
Arthur J. Gallagher & Co. pays an annual dividend of $2.40 per share and has a dividend yield of 1.0%. AON pays an annual dividend of $2.46 per share and has a dividend yield of 0.9%. Arthur J. Gallagher & Co. pays out 48.6% of its earnings in the form of a dividend. AON pays out 19.7% 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.
85.5% of Arthur J. Gallagher & Co. shares are owned by institutional investors. Comparatively, 86.1% of AON shares are owned by institutional investors. 1.6% of Arthur J. Gallagher & Co. shares are owned by company insiders. Comparatively, 1.2% of AON shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Arthur J. Gallagher & Co. has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, AON has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.
Arthur J. Gallagher & Co. received 3 more outperform votes than AON when rated by MarketBeat users. Likewise, 60.04% of users gave Arthur J. Gallagher & Co. an outperform vote while only 56.57% of users gave AON an outperform vote.
In the previous week, AON had 10 more articles in the media than Arthur J. Gallagher & Co.. MarketBeat recorded 36 mentions for AON and 26 mentions for Arthur J. Gallagher & Co.. Arthur J. Gallagher & Co.'s average media sentiment score of 0.78 beat AON's score of 0.38 indicating that Arthur J. Gallagher & Co. is being referred to more favorably in the media.
AON has a net margin of 19.17% compared to Arthur J. Gallagher & Co.'s net margin of 10.27%. Arthur J. Gallagher & Co.'s return on equity of 19.27% beat AON's return on equity.
AON has higher revenue and earnings than Arthur J. Gallagher & Co.. AON 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. presently has a consensus price target of $255.23, suggesting a potential upside of 9.02%. AON has a consensus price target of $334.69, suggesting a potential upside of 17.42%. Given AON's higher possible upside, analysts clearly believe AON is more favorable than Arthur J. Gallagher & Co..
Summary
Arthur J. Gallagher & Co. and AON tied by winning 10 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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