WallStSmart

Arthur J Gallagher & Co (AJG)vsWells Fargo & Company (WFC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Wells Fargo & Company generates 485% more annual revenue ($83.03B vs $14.20B). WFC leads profitability with a 27.2% profit margin vs 11.4%. AJG appears more attractively valued with a PEG of 0.81. WFC earns a higher WallStSmart Score of 76/100 (B+).

AJG

Strong Buy

70

out of 100

Grade: B-

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

WFC

Strong Buy

76

out of 100

Grade: B+

Growth: 7.3Profit: 7.5Value: 5.7Quality: 3.0
Piotroski: 4/9Altman Z: -0.38

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
$65.18B9/10

Large-cap with strong market position

PEG RatioValuation
0.818/10

Growing faster than its price suggests

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.4%8/10

Strong operational efficiency at 28.4%

WFC6 strengths · Avg: 8.8/10
Market CapQuality
$264.46B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
37.1%10/10

Strong operational efficiency at 37.1%

Profit MarginProfitability
27.2%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
12.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
25.0%8/10

Earnings expanding 25.0% YoY

Areas to Watch

AJG3 concerns · Avg: 2.3/10
Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

P/E RatioValuation
40.1x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.762/10

Distress zone — elevated risk

WFC3 concerns · Avg: 2.3/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.382/10

Distress zone — elevated risk

Debt/EquityHealth
2.551/10

Elevated debt levels

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 0.81 suggests the stock is reasonably priced for its growth.

Bull Case : WFC

The strongest argument for WFC centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 27.2% and operating margin at 37.1%.

Bear Case : AJG

The primary concerns for AJG are Return on Equity, P/E Ratio, Altman Z-Score. A P/E of 40.1x leaves little room for execution misses.

Bear Case : WFC

The primary concerns for WFC are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.55 is elevated, increasing financial risk.

Key Dynamics to Monitor

AJG profiles as a growth stock while WFC is a mature play — different risk/reward profiles.

WFC carries more volatility with a beta of 0.92 — expect wider price swings.

AJG is growing revenue faster at 34.6% — sustainability is the question.

WFC generates stronger free cash flow (9.1B), providing more financial flexibility.

Bottom Line

WFC scores higher overall (76/100 vs 70/100), backed by strong 27.2% margins. Both earn "Strong Buy" and "Strong 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.

Wells Fargo & Company

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.

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