Arthur J Gallagher & Co (AJG)vsMarsh & McLennan Companies, Inc. (MRSH)
AJG
Arthur J Gallagher & Co
$288.11
-2.26%
FINANCIAL SERVICES · Cap: $70.79B
MRSH
Marsh & McLennan Companies, Inc.
$204.82
-2.20%
FINANCIAL SERVICES · Cap: $93.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Marsh & McLennan Companies, Inc. generates 84% more annual revenue ($28.46B vs $15.43B). MRSH leads profitability with a 14.2% profit margin vs 11.0%. AJG appears more attractively valued with a PEG of 0.99. AJG earns a higher WallStSmart Score of 70/100 (B-).
AJG
Strong Buy70
out of 100
Grade: B-
MRSH
Buy62
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Large-cap with strong market position
Growing faster than its price suggests
Revenue surging 25.9% year-over-year
Earnings expanding 49.0% YoY
Large-cap with strong market position
Every $100 of equity generates 28 in profit
Generating 1.4B in free cash flow
Areas to Watch
ROE of 6.6% — below average capital efficiency
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : AJG
The strongest argument for AJG centers on Debt/Equity, Market Cap, PEG Ratio. Revenue growth of 25.9% demonstrates continued momentum. PEG of 0.99 suggests the stock is reasonably priced for its growth.
Bull Case : MRSH
The strongest argument for MRSH centers on Market Cap, Return on Equity, Free Cash Flow.
Bear Case : AJG
The primary concerns for AJG are Return on Equity, P/E Ratio, Free Cash Flow. A P/E of 42.1x leaves little room for execution misses.
Bear Case : MRSH
The primary concerns for MRSH are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 1.52 is elevated, increasing financial risk.
Key Dynamics to Monitor
AJG profiles as a growth stock while MRSH is a value play — different risk/reward profiles.
MRSH carries more volatility with a beta of 0.58 — expect wider price swings.
AJG is growing revenue faster at 25.9% — sustainability is the question.
MRSH generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
AJG scores higher overall (70/100 vs 62/100) and 25.9% 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.
Marsh & McLennan Companies, Inc.
FINANCIAL SERVICES · INSURANCE BROKERS · USA
Marsh & McLennan Companies, Inc., a professional services company, provides advisory services and insurance solutions to clients in the areas of risk, strategy, and people globally. The company is headquartered in New York, New York.
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