WallStSmart

Arthur J Gallagher & Co (AJG)vsRyan Specialty Group Holdings Inc (RYAN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arthur J Gallagher & Co generates 378% more annual revenue ($15.11B vs $3.16B). AJG leads profitability with a 10.4% profit margin vs 3.1%. AJG trades at a lower P/E of 39.9x. 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

RYAN

Hold

47

out of 100

Grade: D+

Growth: 6.0Profit: 7.5Value: 4.0Quality: 4.5
Piotroski: 3/9Altman Z: 0.61

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AJG5 strengths · Avg: 9.0/10
Revenue GrowthGrowth
30.9%10/10

Revenue surging 30.9% year-over-year

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Market CapQuality
$61.60B9/10

Large-cap with strong market position

PEG RatioValuation
0.728/10

Growing faster than its price suggests

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

RYAN2 strengths · Avg: 9.0/10
Return on EquityProfitability
36.9%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
25.0%8/10

Strong operational efficiency at 25.0%

Areas to Watch

AJG4 concerns · Avg: 2.8/10
P/E RatioValuation
39.9x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.6%3/10

ROE of 6.6% — below average capital efficiency

EPS GrowthGrowth
-10.7%2/10

Earnings declined 10.7%

Free Cash FlowQuality
$-41.00M2/10

Negative free cash flow — burning cash

RYAN4 concerns · Avg: 3.0/10
Price/BookValuation
9.1x4/10

Trading at 9.1x book value

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
55.2x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : AJG

The strongest argument for AJG centers on Revenue Growth, Debt/Equity, Market Cap. Revenue growth of 30.9% demonstrates continued momentum. PEG of 0.72 suggests the stock is reasonably priced for its growth.

Bull Case : RYAN

The strongest argument for RYAN centers on Return on Equity, Operating Margin.

Bear Case : AJG

The primary concerns for AJG are P/E Ratio, Return on Equity, EPS Growth.

Bear Case : RYAN

The primary concerns for RYAN are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 55.2x leaves little room for execution misses. Debt-to-equity of 7.47 is elevated, increasing financial risk.

Key Dynamics to Monitor

AJG profiles as a growth stock while RYAN is a value play — different risk/reward profiles.

RYAN carries more volatility with a beta of 0.56 — expect wider price swings.

AJG is growing revenue faster at 30.9% — sustainability is the question.

RYAN generates stronger free cash flow (276M), providing more financial flexibility.

Bottom Line

AJG scores higher overall (62/100 vs 47/100) and 30.9% revenue growth. Both earn "Buy" and "Hold" 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.

Ryan Specialty Group Holdings Inc

FINANCIAL SERVICES · INSURANCE BROKERS · USA

Ryan Specialty Group Holdings Inc is a leading provider of specialty insurance solutions, renowned for its innovative and tailored risk management services across various sectors. The company leverages a strong network of insurance wholesale operations and underwriting expertise to foster robust partnerships with insurers and distribution channels. By integrating advanced technology and analytics into its operations, Ryan Specialty enhances underwriting efficiencies and optimizes client outcomes. With a commitment to growth and operational excellence, the firm is well-positioned to generate sustainable shareholder value within a dynamic and competitive insurance landscape.

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