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Arthur J. Gallagher & Co. (AJG) vs Brown & Brown, Inc. (BRO)

Arthur J. Gallagher & Co. and Brown & Brown, Inc. are both Insurance Brokers companies. Arthur J. Gallagher & Co. is the larger, with a market value of $73.9B against $24.7B — 3.0× the size. Brown & Brown, Inc. trades at the lower P/E: 20.3× against 43.4×. Brown & Brown, Inc. grew revenue faster over the last twelve months: 26.1% against 25.6%. Brown & Brown, Inc. has the higher net margin (17.4% vs 10.4%) and the higher return on invested capital (5.79% vs 5.07%). Both pay a dividend; Arthur J. Gallagher & Co. yields more (0.96% vs 0.91%). Across the 21 metrics below, Brown & Brown, Inc. leads on 19 and Arthur J. Gallagher & Co. on 2.

Valuation

Metric AJG BRO Insurance Brokers median
P/E 43.38 20.27 22.14
P/S 4.51 3.48 2.91
P/B 3.07 1.91 3.02
Price to free cash flow 32.32 16.15 22.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 2.31% 4.93% 3.41%
Free cash flow yield 3.09% 6.19% 3.09%

Profitability

Metric AJG BRO Insurance Brokers median
Gross margin 43.22% 50.48% 49.54%
Operating margin 17.15% 28.33% 15.76%
Net margin 10.38% 17.43% 8.19%
Free cash flow margin 0.00% 21.55% 3.58%
Return on equity 7.18% 9.63% 2.99%
Return on assets 2.15% 4.10% 2.33%
Return on invested capital 5.07% 5.79% 5.64%

Growth

Metric AJG BRO Insurance Brokers median
Revenue growth (TTM) 25.58% 26.12% 9.77%
EPS growth (last fiscal year) (11.69%) (8.67%) (8.67%)
Revenue growth, 5-year CAGR 14.76% 17.70% 9.30%
Net income growth, 5-year CAGR 12.78% 17.52% 0.00%

Health

Metric AJG BRO Insurance Brokers median
Debt to equity 0.49 0.62 0.49
Current ratio 1.05 1.96 1.54
Net debt to EBITDA 2.95 1.99 1.20

Dividend

Metric AJG BRO Insurance Brokers median
Dividend yield 0.96% 0.91% 1.01%
Payout ratio 0.42 0.20 0.33

Size

Metric AJG BRO Insurance Brokers median
Market cap 73.88b 24.67b 2.41b

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