WallStSmart

Arthur J Gallagher & Co (AJG)vsAccelerant Holdings (ARX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arthur J Gallagher & Co generates 1388% more annual revenue ($14.20B vs $953.90M). AJG leads profitability with a 11.4% profit margin vs -150.6%. AJG earns a higher WallStSmart Score of 72/100 (B).

AJG

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 6.0Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: 0.76

ARX

Avoid

34

out of 100

Grade: F

Growth: 7.3Profit: 2.5Value: 5.0Quality: 5.0
Piotroski: 5/9Altman Z: -0.52

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AJG6 strengths · Avg: 8.8/10
Revenue GrowthGrowth
34.6%10/10

Revenue surging 34.6% year-over-year

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Market CapQuality
$55.43B9/10

Large-cap with strong market position

PEG RatioValuation
0.948/10

Growing faster than its price suggests

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.4%8/10

Strong operational efficiency at 28.4%

ARX2 strengths · Avg: 9.5/10
Revenue GrowthGrowth
59.7%10/10

Revenue surging 59.7% year-over-year

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

Areas to Watch

AJG3 concerns · Avg: 3.0/10
P/E RatioValuation
35.3x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

Altman Z-ScoreHealth
0.762/10

Distress zone — elevated risk

ARX4 concerns · Avg: 2.0/10
Return on EquityProfitability
-197.2%2/10

ROE of -197.2% — below average capital efficiency

EPS GrowthGrowth
-11.1%2/10

Earnings declined 11.1%

Free Cash FlowQuality
$-28.10M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.522/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AJG

The strongest argument for AJG centers on Revenue Growth, Debt/Equity, Market Cap. Revenue growth of 34.6% demonstrates continued momentum. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bull Case : ARX

The strongest argument for ARX centers on Revenue Growth, Debt/Equity. Revenue growth of 59.7% demonstrates continued momentum.

Bear Case : AJG

The primary concerns for AJG are P/E Ratio, Return on Equity, Altman Z-Score.

Bear Case : ARX

The primary concerns for ARX are Return on Equity, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

AJG profiles as a growth stock while ARX is a hypergrowth play — different risk/reward profiles.

ARX is growing revenue faster at 59.7% — sustainability is the question.

AJG generates stronger free cash flow (921M), providing more financial flexibility.

Monitor INSURANCE BROKERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AJG scores higher overall (72/100 vs 34/100) and 34.6% revenue growth. Both earn "Strong Buy" and "Avoid" 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.

Accelerant Holdings

FINANCIAL SERVICES · INSURANCE BROKERS · USA

Accelerant Holdings (ARX) is an innovative specialty insurance and reinsurance provider committed to meeting the unique demands of underserved markets. By leveraging advanced data analytics and technology, the company enhances underwriting performance through a collaborative membership model that promotes innovation among its insurance partners. This strategic focus on optimizing risk management positions Accelerant for sustainable growth in a dynamic insurance landscape, allowing it to capitalize on emerging opportunities while reinforcing its commitment to operational excellence and agility.

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