Arthur J Gallagher & Co (AJG)vsRoyal Bank of Canada (RY)
AJG
Arthur J Gallagher & Co
$211.81
-0.75%
FINANCIAL SERVICES · Cap: $55.37B
RY
Royal Bank of Canada
$179.97
+2.71%
FINANCIAL SERVICES · Cap: $243.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 388% more annual revenue ($63.42B vs $13.01B). RY leads profitability with a 33.1% profit margin vs 11.5%. AJG appears more attractively valued with a PEG of 0.93. RY earns a higher WallStSmart Score of 68/100 (B-).
AJG
Buy60
out of 100
Grade: C
RY
Strong Buy68
out of 100
Grade: B-
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
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
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
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 : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.
Bear Case : AJG
The primary concerns for AJG are P/E Ratio, Return on Equity, EPS Growth.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
AJG profiles as a growth stock while RY is a mature play — different risk/reward profiles.
RY carries more volatility with a beta of 0.92 — expect wider price swings.
AJG is growing revenue faster at 36.7% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 60/100), backed by strong 33.1% margins. 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.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
Compare with Other INSURANCE BROKERS Stocks
Want to dig deeper into these stocks?