Arthur J Gallagher & Co (AJG)vsGoosehead Insurance Inc (GSHD)
AJG
Arthur J Gallagher & Co
$213.56
-1.26%
FINANCIAL SERVICES · Cap: $54.91B
GSHD
Goosehead Insurance Inc
$41.19
-1.93%
FINANCIAL SERVICES · Cap: $1.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Arthur J Gallagher & Co generates 3468% more annual revenue ($13.01B vs $364.63M). AJG leads profitability with a 11.5% profit margin vs 7.6%. AJG trades at a lower P/E of 37.2x. AJG earns a higher WallStSmart Score of 60/100 (C).
AJG
Buy60
out of 100
Grade: C
GSHD
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-426.0%
Fair Value
$39.03
Current Price
$213.56
$174.53 premium
Margin of Safety
-635.6%
Fair Value
$6.73
Current Price
$41.19
$34.46 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
Every $100 of equity generates 176 in profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.3%
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
Smaller company, higher risk/reward
7.6% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
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 : GSHD
The strongest argument for GSHD centers on Return on Equity, Debt/Equity, Operating Margin. Revenue growth of 12.2% demonstrates continued momentum.
Bear Case : AJG
The primary concerns for AJG are P/E Ratio, Return on Equity, EPS Growth.
Bear Case : GSHD
The primary concerns for GSHD are Market Cap, Profit Margin, Piotroski F-Score. A P/E of 42.4x leaves little room for execution misses.
Key Dynamics to Monitor
AJG profiles as a growth stock while GSHD is a value play — different risk/reward profiles.
GSHD carries more volatility with a beta of 1.62 — 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.
Bottom Line
AJG scores higher overall (60/100 vs 47/100) and 36.7% revenue growth. Both earn "Buy" and "Hold" 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.
Goosehead Insurance Inc
FINANCIAL SERVICES · INSURANCE BROKERS · USA
Goosehead Insurance, Inc. is a portfolio company of Goosehead Financial, LLC providing personal lines insurance agency services in the United States. The company is headquartered in Westlake, Texas.
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