Arthur J Gallagher & Co (AJG)vsBrown & Brown Inc (BRO)
AJG
Arthur J Gallagher & Co
$216.28
-0.21%
FINANCIAL SERVICES · Cap: $55.23B
BRO
Brown & Brown Inc
$66.50
-0.33%
FINANCIAL SERVICES · Cap: $22.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Arthur J Gallagher & Co generates 126% more annual revenue ($13.01B vs $5.76B). BRO leads profitability with a 18.3% profit margin vs 11.5%. AJG appears more attractively valued with a PEG of 0.93. BRO earns a higher WallStSmart Score of 69/100 (B-).
AJG
Buy60
out of 100
Grade: C
BRO
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-426.0%
Fair Value
$39.03
Current Price
$216.28
$177.25 premium
Margin of Safety
-210.0%
Fair Value
$21.62
Current Price
$66.50
$44.88 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 36.7% year-over-year
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 36.2% year-over-year
Reasonable price relative to book value
Strong operational efficiency at 23.2%
Areas to Watch
Premium valuation, high expectations priced in
ROE of 6.9% — below average capital efficiency
Earnings declined 48.3%
Distress zone — elevated risk
Expensive relative to growth rate
Weak financial health signals
Earnings declined 16.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : AJG
The strongest argument for AJG centers on Revenue Growth, Market Cap, PEG Ratio. Revenue growth of 36.7% demonstrates continued momentum. PEG of 0.93 suggests the stock is reasonably priced for its growth.
Bull Case : BRO
The strongest argument for BRO centers on Revenue Growth, Price/Book, Operating Margin. Profitability is solid with margins at 18.3% and operating margin at 23.2%. Revenue growth of 36.2% demonstrates continued momentum.
Bear Case : AJG
The primary concerns for AJG are P/E Ratio, Return on Equity, EPS Growth.
Bear Case : BRO
The primary concerns for BRO are PEG Ratio, Piotroski F-Score, EPS Growth.
Key Dynamics to Monitor
BRO carries more volatility with a beta of 0.80 — expect wider price swings.
AJG is growing revenue faster at 36.7% — sustainability is the question.
AJG generates stronger free cash flow (713M), providing more financial flexibility.
Monitor INSURANCE BROKERS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BRO scores higher overall (69/100 vs 60/100), backed by strong 18.3% margins and 36.2% revenue growth. Both earn "Strong 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.
Brown & Brown Inc
FINANCIAL SERVICES · INSURANCE BROKERS · USA
Brown & Brown, Inc. markets and sells insurance products and services in the United States, Bermuda, Canada, the Cayman Islands, Ireland, and the United Kingdom. The company is headquartered in Daytona Beach, Florida.
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