Arthur J Gallagher & Co (AJG)vsMarsh & McLennan Companies, Inc. (MRSH)
AJG
Arthur J Gallagher & Co
$216.28
-0.21%
FINANCIAL SERVICES · Cap: $55.23B
MRSH
Marsh & McLennan Companies, Inc.
$173.10
-0.44%
FINANCIAL SERVICES · Cap: $85.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Marsh & McLennan Companies, Inc. generates 107% more annual revenue ($26.98B vs $13.01B). MRSH leads profitability with a 15.4% profit margin vs 11.5%. AJG appears more attractively valued with a PEG of 0.93. MRSH earns a higher WallStSmart Score of 64/100 (C+).
AJG
Buy60
out of 100
Grade: C
MRSH
Buy64
out of 100
Grade: C+
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
-28.9%
Fair Value
$134.21
Current Price
$173.10
$38.89 premium
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
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Strong operational efficiency at 25.4%
Generating 2.1B 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
Expensive relative to growth rate
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 : MRSH
The strongest argument for MRSH centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 25.4%.
Bear Case : AJG
The primary concerns for AJG are P/E Ratio, Return on Equity, EPS Growth.
Bear Case : MRSH
The primary concerns for MRSH are PEG Ratio.
Key Dynamics to Monitor
AJG profiles as a growth stock while MRSH is a mature play — different risk/reward profiles.
MRSH carries more volatility with a beta of 0.73 — expect wider price swings.
AJG is growing revenue faster at 36.7% — sustainability is the question.
MRSH generates stronger free cash flow (2.1B), providing more financial flexibility.
Bottom Line
MRSH scores higher overall (64/100 vs 60/100), backed by strong 15.4% margins. Both earn "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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