Arthur J Gallagher & Co (AJG)vsBrown & Brown Inc (BRO)
AJG
Arthur J Gallagher & Co
$288.11
-2.26%
FINANCIAL SERVICES · Cap: $70.79B
BRO
Brown & Brown Inc
$72.12
-3.04%
FINANCIAL SERVICES · Cap: $21.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Arthur J Gallagher & Co generates 126% more annual revenue ($15.43B vs $6.81B). BRO leads profitability with a 17.9% profit margin vs 11.0%. AJG appears more attractively valued with a PEG of 0.99. AJG earns a higher WallStSmart Score of 70/100 (B-).
AJG
Strong Buy70
out of 100
Grade: B-
BRO
Buy61
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Large-cap with strong market position
Growing faster than its price suggests
Revenue surging 25.9% year-over-year
Earnings expanding 49.0% YoY
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 24.0%
Areas to Watch
ROE of 6.6% — below average capital efficiency
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
Weak financial health signals
Earnings declined 1.0%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : AJG
The strongest argument for AJG centers on Debt/Equity, Market Cap, PEG Ratio. Revenue growth of 25.9% demonstrates continued momentum. PEG of 0.99 suggests the stock is reasonably priced for its growth.
Bull Case : BRO
The strongest argument for BRO centers on Debt/Equity, Price/Book, Operating Margin. Profitability is solid with margins at 17.9% and operating margin at 24.0%.
Bear Case : AJG
The primary concerns for AJG are Return on Equity, P/E Ratio, Free Cash Flow. A P/E of 42.1x leaves little room for execution misses.
Bear Case : BRO
The primary concerns for BRO are PEG Ratio, Piotroski F-Score, EPS Growth.
Key Dynamics to Monitor
AJG profiles as a growth stock while BRO is a mature play — different risk/reward profiles.
BRO carries more volatility with a beta of 0.59 — expect wider price swings.
AJG is growing revenue faster at 25.9% — sustainability is the question.
Monitor INSURANCE BROKERS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AJG scores higher overall (70/100 vs 61/100) and 25.9% revenue growth. 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.
Brown & Brown Inc
FINANCIAL SERVICES · INSURANCE BROKERS · USA
Brown & Brown, Inc. markets and sells insurance products and services in the United States, Bermuda, Canada, the Cayman Islands, Ireland, and the United Kingdom. The company is headquartered in Daytona Beach, Florida.
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