Arthur J Gallagher & Co (AJG)vsMarsh & McLennan Companies Inc (MMC)
AJG
Arthur J Gallagher & Co
$216.28
-0.21%
FINANCIAL SERVICES · Cap: $55.23B
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 103% more annual revenue ($26.45B vs $13.01B). MMC leads profitability with a 15.6% profit margin vs 11.5%. AJG appears more attractively valued with a PEG of 0.93. MMC earns a higher WallStSmart Score of 62/100 (C+).
AJG
Buy60
out of 100
Grade: C
MMC
Buy62
out of 100
Grade: C+
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
-222.6%
Fair Value
$56.64
Current Price
$182.70
$126.06 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
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Generating 2.3B in free cash flow
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
0.0% earnings growth
Distress zone — elevated risk
Weak financial health signals
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 : MMC
The strongest argument for MMC centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.6% and operating margin at 19.2%. Revenue growth of 11.5% demonstrates continued momentum.
Bear Case : AJG
The primary concerns for AJG are P/E Ratio, Return on Equity, EPS Growth.
Bear Case : MMC
The primary concerns for MMC are PEG Ratio, EPS Growth, Altman Z-Score.
Key Dynamics to Monitor
AJG profiles as a growth stock while MMC is a mature 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 36.7% — sustainability is the question.
MMC generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
MMC scores higher overall (62/100 vs 60/100), backed by strong 15.6% margins and 11.5% 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.
Compare with Other INSURANCE BROKERS Stocks
Want to dig deeper into these stocks?