Arthur J Gallagher & Co (AJG)vsAon PLC (AON)
AJG
Arthur J Gallagher & Co
$216.28
-0.21%
FINANCIAL SERVICES · Cap: $55.23B
AON
Aon PLC
$327.03
+0.33%
FINANCIAL SERVICES · Cap: $69.99B
Smart Verdict
WallStSmart Research — data-driven comparison
Aon PLC generates 32% more annual revenue ($17.18B vs $13.01B). AON leads profitability with a 21.5% profit margin vs 11.5%. AJG appears more attractively valued with a PEG of 0.93. AON earns a higher WallStSmart Score of 68/100 (B-).
AJG
Buy60
out of 100
Grade: C
AON
Strong Buy68
out of 100
Grade: B-
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
+62.1%
Fair Value
$818.53
Current Price
$327.03
$491.50 discount
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
Every $100 of equity generates 47 in profit
Strong operational efficiency at 31.4%
Earnings expanding 138.3% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Generating 1.3B 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
3.7% revenue growth
Expensive relative to growth rate
Distress zone — elevated risk
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 : AON
The strongest argument for AON centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 21.5% and operating margin at 31.4%.
Bear Case : AJG
The primary concerns for AJG are P/E Ratio, Return on Equity, EPS Growth.
Bear Case : AON
The primary concerns for AON are Revenue Growth, PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
AJG profiles as a growth stock while AON is a value play — different risk/reward profiles.
AON carries more volatility with a beta of 0.83 — expect wider price swings.
AJG is growing revenue faster at 36.7% — sustainability is the question.
AON generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
AON scores higher overall (68/100 vs 60/100), backed by strong 21.5% 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.
Aon PLC
FINANCIAL SERVICES · INSURANCE BROKERS · USA
Aon plc is a multinational professional services firm that sells a range of financial risk-mitigation products, including insurance, pension administration, and health-insurance plans.
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