Arthur J. Gallagher vs Marsh & McLennan Companies
AJG and MRSH side by side, both in insurance agents, brokers, and service. Figures are trailing twelve months unless noted, from SEC filings and end-of-day prices.
How AJG and MRSH compare
Marsh & McLennan Companies is the larger company, worth 1.4 times as much as Arthur J. Gallagher ($95.7B against $70.8B).
On earnings, Marsh & McLennan Companies is cheaper: it trades at 24.0× trailing earnings, against 45.7× for Arthur J. Gallagher.
Arthur J. Gallagher grew revenue faster over the last twelve months (26.3% versus 7.6% for Marsh & McLennan Companies).
Marsh & McLennan Companies keeps more of each dollar of sales as profit, with a net margin of 14.2% compared with 10.0% at Arthur J. Gallagher.
Both pay dividends: Arthur J. Gallagher yields 1.00% and Marsh & McLennan Companies 1.9%.
Marsh & McLennan Companies scores higher on the StockData Score (13 against 12 for Arthur J. Gallagher), which adds up 30 checks on valuation, growth, past performance, financial health and dividends.
Key numbers
A dot marks the better figure where higher or lower is clearly better.
| Metric | AJG | MRSH |
|---|---|---|
| Size and price | ||
| Market cap | $70.8B | $95.7B |
| Share price | $276.07 | $200.62 |
| Change, 1 year | 5.4% | 11.5% |
| Change, 5 years | 72.3% | 24.3% |
| Beta (5Y) | 0.59 | 0.61 |
| Employees | 72K | 95K |
| StockData Score | ||
| Total score | 12 | 13 (better) |
| Valuation score | 2 | 3 (better) |
| Growth score | 2 (better) | 1 |
| Performance score | 3 | 3 |
| Health score | 2 | 3 (better) |
| Dividend score | 3 | 3 |
| Valuation | ||
| P/E | 45.7× | 24.0× (better) |
| P/S | 4.5× | 3.4× (better) |
| P/B | 3.0× | – |
| EV/EBITDA | 20.9× | 17.8× (better) |
| P/FCF | – | 23.0× |
| PEG | 13.39 | 2.04 (better) |
| FCF yield | – | 4.3% |
| Fair value | $327.44 | – |
| Margin of safety | 15.7% | – |
| Growth | ||
| Revenue growth (TTM) | 26.3% (better) | 7.6% |
| Revenue growth, 5Y average | 14.8% (better) | 9.4% |
| Net income growth (TTM) | −4.5% | −2.1% (better) |
| EPS growth (TTM) | −9.2% | 0.12% (better) |
| EPS growth, 5Y average | 6.4% | 16.4% (better) |
| Profitability | ||
| Operating margin | – | 21.4% |
| Net margin | 10.0% | 14.2% (better) |
| FCF margin | – | 14.6% |
| Return on equity | 6.7% | – |
| Financial health | ||
| Debt / equity | 0.57 | – |
| Net debt / EBITDA | 3.05 | 2.90 (better) |
| Interest coverage | – | 6.3× |
| Current ratio | 1.05 | 1.09 (better) |
| Altman Z-score | 1.07 | 2.81 (better) |
| Piotroski F-score | 4 | 5 (better) |
| Dividends and buybacks | ||
| Dividend yield | 1.00% | 1.9% (better) |
| Payout ratio | 44.1% | 44.5% |
| Years of dividend growth | 15 (better) | 3 |
| Dividend growth, 5Y average | 7.6% | – |
| Buyback yield | −0.30% | 3.2% (better) |
| Shareholder yield | 0.70% | 5.0% (better) |
| Ownership | ||
| Held by institutions | 93.1% | 92.0% |
| Held by insiders | 0.98% | 0.10% |
| Insider net buying, 12 months | −$23.5M | −$18.9M (better) |
| Superinvestors holding | 2 | 2 |
| Short interest, % of float | 3.2% | 1.3% |
Go deeper
- AJG stock overview
- AJG income statement
- AJG valuation and score
- MRSH stock overview
- MRSH income statement
- MRSH valuation and score
Other comparisons
For information only, not investment advice. Check the source filings before relying on any figure.