Arthur J Gallagher & Co (AJG)vsWillis Towers Watson PLC (WTW)
AJG
Arthur J Gallagher & Co
$216.28
-0.21%
FINANCIAL SERVICES · Cap: $55.23B
WTW
Willis Towers Watson PLC
$293.36
-0.02%
FINANCIAL SERVICES · Cap: $27.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Arthur J Gallagher & Co generates 34% more annual revenue ($13.01B vs $9.71B). WTW leads profitability with a 16.5% profit margin vs 11.5%. AJG appears more attractively valued with a PEG of 0.93. WTW earns a higher WallStSmart Score of 62/100 (C+).
AJG
Buy60
out of 100
Grade: C
WTW
Buy62
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
-153.5%
Fair Value
$110.50
Current Price
$293.36
$182.86 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
Strong operational efficiency at 35.4%
Every $100 of equity generates 20 in profit
Attractively priced relative to earnings
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
Revenue declined 3.3%
Earnings declined 38.2%
Distress zone — elevated risk
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 : WTW
The strongest argument for WTW centers on Operating Margin, Return on Equity, P/E Ratio. Profitability is solid with margins at 16.5% and operating margin at 35.4%. PEG of 1.08 suggests the stock is reasonably priced for its growth.
Bear Case : AJG
The primary concerns for AJG are P/E Ratio, Return on Equity, EPS Growth.
Bear Case : WTW
The primary concerns for WTW are Revenue Growth, EPS Growth, Altman Z-Score.
Key Dynamics to Monitor
AJG profiles as a growth stock while WTW is a declining play — different risk/reward profiles.
AJG carries more volatility with a beta of 0.67 — expect wider price swings.
AJG is growing revenue faster at 36.7% — sustainability is the question.
AJG generates stronger free cash flow (713M), providing more financial flexibility.
Bottom Line
WTW scores higher overall (62/100 vs 60/100), backed by strong 16.5% 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.
Willis Towers Watson PLC
FINANCIAL SERVICES · INSURANCE BROKERS · USA
Willis Towers Watson PLC (WTW) is a leading global advisory, broking, and solutions firm that excels in risk management, insurance, and consulting services. With a presence in over 140 countries, WTW leverages cutting-edge data analytics and technology to deliver tailored solutions across key sectors such as health, retirement, and talent management. The company caters to a diverse clientele, ranging from multinational corporations to smaller enterprises, and is dedicated to fostering sustainable growth while enhancing client engagement. Its strategic initiatives position WTW as a trusted partner for organizations seeking to navigate the complexities of an evolving market landscape.
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