Arthur J Gallagher & Co (AJG)vsAon PLC (AON)
AJG
Arthur J Gallagher & Co
$248.12
-1.44%
FINANCIAL SERVICES · Cap: $64.35B
AON
Aon PLC
$358.30
-0.68%
FINANCIAL SERVICES · Cap: $75.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Aon PLC generates 16% more annual revenue ($17.58B vs $15.11B). AON leads profitability with a 22.3% profit margin vs 10.4%. AJG appears more attractively valued with a PEG of 0.82. AJG earns a higher WallStSmart Score of 62/100 (C+).
AJG
Buy62
out of 100
Grade: C+
AON
Buy54
out of 100
Grade: C-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 31.0% year-over-year
Conservative balance sheet, low leverage
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 40 in profit
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 23.5%
Areas to Watch
ROE of 6.8% — below average capital efficiency
Premium valuation, high expectations priced in
Earnings declined 10.7%
Distress zone — elevated risk
2.2% revenue growth
Elevated debt levels
Expensive relative to growth rate
Earnings declined 3.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : AJG
The strongest argument for AJG centers on Revenue Growth, Debt/Equity, Market Cap. Revenue growth of 31.0% demonstrates continued momentum. PEG of 0.82 suggests the stock is reasonably priced for its growth.
Bull Case : AON
The strongest argument for AON centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 22.3% and operating margin at 23.5%.
Bear Case : AJG
The primary concerns for AJG are Return on Equity, P/E Ratio, EPS Growth. A P/E of 41.6x leaves little room for execution misses.
Bear Case : AON
The primary concerns for AON are Revenue Growth, Debt/Equity, PEG Ratio. Debt-to-equity of 1.57 is elevated, increasing financial risk.
Key Dynamics to Monitor
AJG profiles as a growth stock while AON is a value play — different risk/reward profiles.
AON carries more volatility with a beta of 0.68 — expect wider price swings.
AJG is growing revenue faster at 31.0% — sustainability is the question.
AJG generates stronger free cash flow (921M), providing more financial flexibility.
Bottom Line
AJG scores higher overall (62/100 vs 54/100) and 31.0% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Arthur J Gallagher & Co
FINANCIAL SERVICES · INSURANCE BROKERS · USA
Arthur J. Gallagher & Co. (AJG) is an American global insurance brokerage and risk management services firm headquartered in Rolling Meadows, Illinois.
Aon PLC
FINANCIAL SERVICES · INSURANCE BROKERS · USA
Aon plc is a multinational professional services firm that sells a range of financial risk-mitigation products, including insurance, pension administration, and health-insurance plans.
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