Arthur J Gallagher & Co (AJG)vsBrown & Brown Inc (BRO)
AJG
Arthur J Gallagher & Co
$248.12
-1.44%
FINANCIAL SERVICES · Cap: $64.35B
BRO
Brown & Brown Inc
$71.43
+0.35%
FINANCIAL SERVICES · Cap: $23.56B
Smart Verdict
WallStSmart Research — data-driven comparison
Arthur J Gallagher & Co generates 127% more annual revenue ($15.11B vs $6.66B). BRO leads profitability with a 18.1% profit margin vs 10.4%. AJG appears more attractively valued with a PEG of 0.82. BRO earns a higher WallStSmart Score of 75/100 (B).
AJG
Buy62
out of 100
Grade: C+
BRO
Strong Buy75
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 31.0% year-over-year
Conservative balance sheet, low leverage
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 41.8%
Revenue surging 32.4% year-over-year
Reasonable price relative to book value
Areas to Watch
ROE of 6.8% — below average capital efficiency
Premium valuation, high expectations priced in
Earnings declined 10.7%
Distress zone — elevated risk
Expensive relative to growth rate
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : AJG
The strongest argument for AJG centers on Revenue Growth, Debt/Equity, Market Cap. Revenue growth of 31.0% demonstrates continued momentum. PEG of 0.82 suggests the stock is reasonably priced for its growth.
Bull Case : BRO
The strongest argument for BRO centers on Operating Margin, Revenue Growth, Price/Book. Profitability is solid with margins at 18.1% and operating margin at 41.8%. Revenue growth of 32.4% demonstrates continued momentum.
Bear Case : AJG
The primary concerns for AJG are Return on Equity, P/E Ratio, EPS Growth. A P/E of 41.6x leaves little room for execution misses.
Bear Case : BRO
The primary concerns for BRO are PEG Ratio, Piotroski F-Score, Altman Z-Score.
Key Dynamics to Monitor
BRO carries more volatility with a beta of 0.60 — expect wider price swings.
BRO is growing revenue faster at 32.4% — 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
BRO scores higher overall (75/100 vs 62/100), backed by strong 18.1% margins and 32.4% 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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