WallStSmart

Arthur J Gallagher & Co (AJG)vsMarsh & McLennan Companies, Inc. (MRSH)

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Smart Verdict

WallStSmart Research — data-driven comparison

Marsh & McLennan Companies, Inc. generates 84% more annual revenue ($28.46B vs $15.43B). MRSH leads profitability with a 14.2% 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 Buy

70

out of 100

Grade: B-

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

MRSH

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 7.5Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: 1.74

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AJG5 strengths · Avg: 8.6/10
Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Market CapQuality
$70.79B9/10

Large-cap with strong market position

PEG RatioValuation
0.998/10

Growing faster than its price suggests

Revenue GrowthGrowth
25.9%8/10

Revenue surging 25.9% year-over-year

EPS GrowthGrowth
49.0%8/10

Earnings expanding 49.0% YoY

MRSH3 strengths · Avg: 8.7/10
Market CapQuality
$93.90B9/10

Large-cap with strong market position

Return on EquityProfitability
27.5%9/10

Every $100 of equity generates 28 in profit

Free Cash FlowQuality
$1.40B8/10

Generating 1.4B in free cash flow

Areas to Watch

AJG4 concerns · Avg: 2.3/10
Return on EquityProfitability
6.6%3/10

ROE of 6.6% — below average capital efficiency

P/E RatioValuation
42.1x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-41.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.762/10

Distress zone — elevated risk

MRSH3 concerns · Avg: 3.7/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.744/10

Distress zone — elevated risk

Debt/EquityHealth
1.523/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 : MRSH

The strongest argument for MRSH centers on Market Cap, Return on Equity, Free Cash Flow.

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 : MRSH

The primary concerns for MRSH are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 1.52 is elevated, increasing financial risk.

Key Dynamics to Monitor

AJG profiles as a growth stock while MRSH is a value play — different risk/reward profiles.

MRSH carries more volatility with a beta of 0.58 — expect wider price swings.

AJG is growing revenue faster at 25.9% — sustainability is the question.

MRSH generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

AJG scores higher overall (70/100 vs 62/100) 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.

Marsh & McLennan Companies, Inc.

FINANCIAL SERVICES · INSURANCE BROKERS · USA

Marsh & McLennan Companies, Inc., a professional services company, provides advisory services and insurance solutions to clients in the areas of risk, strategy, and people globally. The company is headquartered in New York, New York.

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