Arthur J. Gallagher & Co. (AJG) vs Accelerant Holdings (ARX)

Arthur J. Gallagher & Co. and Accelerant Holdings are both Insurance Brokers companies. Arthur J. Gallagher & Co. is the larger, with a market value of $58.2B against $4.3B — 13.6× the size. Accelerant Holdings has negative trailing earnings, so its P/E is not meaningful; Arthur J. Gallagher & Co. trades at 37.8×. Accelerant Holdings grew revenue faster over the last twelve months: 54.6% against 26.3%. Arthur J. Gallagher & Co. has the higher net margin (9.95% vs −119.3%) and the higher return on invested capital (4.79% vs 0.00%). Across the 19 metrics below, Arthur J. Gallagher & Co. leads on 10 and Accelerant Holdings on 9.

Valuation

Metric AJG ARX Insurance Brokers median
P/E 37.82 n/m 25.35
P/S 3.77 3.76 2.10
P/B 2.50 5.80 2.81
Price to free cash flow 25.96 2,396.47 18.44
EV/EBITDA 17.63 9.84 12.36
EV/Sales 4.44 2.42 3.00
Earnings yield 2.64% (33.67%) 2.64%
Free cash flow yield 3.85% 0.04% 2.30%

Profitability

Metric AJG ARX Insurance Brokers median
Gross margin 42.95% 100.00% 42.95%
Operating margin 16.70% 21.15% 15.37%
Net margin 9.95% (119.27%) 8.77%
Free cash flow margin 14.50% 0.16% 3.89%
Return on equity 6.70% (369.41%) 0.00%
Return on assets 1.94% (16.63%) 2.23%
Return on invested capital 4.79% 0.00% 5.27%

Growth

Metric AJG ARX Insurance Brokers median
Revenue growth (TTM) 26.32% 54.55% 7.09%
EPS growth (last fiscal year) (11.69%) (6,630.08%) —
Revenue growth, 5-year CAGR 14.76% — 9.30%
Net income growth, 5-year CAGR 12.78% — 0.00%

Health

Metric AJG ARX Insurance Brokers median
Debt to equity 0.50 0.16 0.19
Current ratio 1.05 1.51 1.55
Net debt to EBITDA 2.95 (7.35) 0.89

Dividend

Metric AJG ARX Insurance Brokers median
Dividend yield 1.00% — 1.36%
Payout ratio 0.41 — 0.00

Size

Metric AJG ARX Insurance Brokers median
Market cap 58.21b 4.29b 1.44b

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