Arthur J Gallagher & Co (AJG)vsMarsh & McLennan Companies Inc (MMC)
AJG
Arthur J Gallagher & Co
$248.12
-1.44%
FINANCIAL SERVICES · Cap: $64.35B
MMC
Marsh & McLennan Companies Inc
$182.70
-1.58%
FINANCIAL SERVICES · Cap: $89.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Marsh & McLennan Companies Inc generates 75% more annual revenue ($26.45B vs $15.11B). AJG leads profitability with a 10.4% profit margin vs 0.2%. AJG appears more attractively valued with a PEG of 0.82. MMC earns a higher WallStSmart Score of 62/100 (C+).
AJG
Buy62
out of 100
Grade: C+
MMC
Buy62
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
Large-cap with strong market position
Generating 2.3B in free cash flow
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
Expensive relative to growth rate
0.1% revenue growth
0.0% earnings growth
Distress zone — elevated risk
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 : MMC
The strongest argument for MMC centers on Market Cap, Free Cash Flow.
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 : MMC
The primary concerns for MMC are PEG Ratio, Revenue Growth, EPS Growth. Thin 0.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
AJG profiles as a growth stock while MMC is a value play — different risk/reward profiles.
MMC carries more volatility with a beta of 0.75 — expect wider price swings.
AJG is growing revenue faster at 31.0% — sustainability is the question.
MMC generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
AJG scores higher overall (62/100 vs 62/100) 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.
Marsh & McLennan Companies Inc
FINANCIAL SERVICES · INSURANCE BROKERS · USA
Marsh McLennan (formerly known as Marsh & McLennan Companies) is a global professional services firm, headquartered in New York City with businesses in insurance brokerage, risk management, reinsurance services, talent management, investment advisory, and management consulting. Its four main operating companies are Marsh, Guy Carpenter, Mercer, and Oliver Wyman.
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