WallStSmart

Arthur J Gallagher & Co (AJG)vsGoosehead Insurance Inc (GSHD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arthur J Gallagher & Co generates 3662% more annual revenue ($15.11B vs $401.64M). AJG leads profitability with a 10.4% profit margin vs 8.8%. AJG trades at a lower P/E of 41.6x. AJG earns a higher WallStSmart Score of 62/100 (C+).

AJG

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 5.5Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: 0.76

GSHD

Buy

60

out of 100

Grade: C+

Growth: 9.3Profit: 8.0Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.25

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AJG5 strengths · Avg: 9.0/10
Revenue GrowthGrowth
31.0%10/10

Revenue surging 31.0% year-over-year

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Market CapQuality
$64.35B9/10

Large-cap with strong market position

PEG RatioValuation
0.828/10

Growing faster than its price suggests

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

GSHD5 strengths · Avg: 9.2/10
Return on EquityProfitability
175.8%10/10

Every $100 of equity generates 176 in profit

EPS GrowthGrowth
122.2%10/10

Earnings expanding 122.2% YoY

Debt/EquityHealth
-3.3210/10

Conservative balance sheet, low leverage

Operating MarginProfitability
23.4%8/10

Strong operational efficiency at 23.4%

Revenue GrowthGrowth
20.7%8/10

Revenue surging 20.7% year-over-year

Areas to Watch

AJG4 concerns · Avg: 2.3/10
Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

P/E RatioValuation
41.6x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-10.7%2/10

Earnings declined 10.7%

Altman Z-ScoreHealth
0.762/10

Distress zone — elevated risk

GSHD2 concerns · Avg: 2.0/10
P/E RatioValuation
45.3x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.252/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : GSHD

The strongest argument for GSHD centers on Return on Equity, EPS Growth, Debt/Equity. Revenue growth of 20.7% demonstrates continued momentum.

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 : GSHD

The primary concerns for GSHD are P/E Ratio, Altman Z-Score. A P/E of 45.3x leaves little room for execution misses.

Key Dynamics to Monitor

GSHD carries more volatility with a beta of 1.40 — 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.

Monitor INSURANCE BROKERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AJG scores higher overall (62/100 vs 60/100) 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.

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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