Arthur J. Gallagher & Co. (AJG) vs Baldwin Insurance Group, Inc. (BWIN)

Arthur J. Gallagher & Co. and Baldwin Insurance Group, Inc. are both Insurance Brokers companies. Arthur J. Gallagher & Co. is the larger, with a market value of $58.2B against $4.5B — 13.0× the size. Baldwin Insurance Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Arthur J. Gallagher & Co. trades at 37.8×. Arthur J. Gallagher & Co. grew revenue faster over the last twelve months: 26.3% against 19.0%. Arthur J. Gallagher & Co. has the higher net margin (9.95% vs −4.67%) and the higher return on invested capital (4.79% vs −2.29%). Across the 21 metrics below, Arthur J. Gallagher & Co. leads on 16 and Baldwin Insurance Group, Inc. on 5.

Valuation

Metric AJG BWIN Insurance Brokers median
P/E 37.82 n/m 25.35
P/S 3.77 1.70 2.10
P/B 2.50 2.08 2.81
Price to free cash flow 25.96 67.62 18.44
EV/EBITDA 17.63 62.31 12.36
EV/Sales 4.44 2.88 3.00
Earnings yield 2.64% (3.26%) 2.64%
Free cash flow yield 3.85% 1.48% 2.30%

Profitability

Metric AJG BWIN Insurance Brokers median
Gross margin 42.95% 30.33% 42.95%
Operating margin 16.70% (6.88%) 15.37%
Net margin 9.95% (4.67%) 8.77%
Free cash flow margin 14.50% 2.52% 3.89%
Return on equity 6.70% (6.58%) 0.00%
Return on assets 1.94% (1.64%) 2.23%
Return on invested capital 4.79% (2.29%) 5.27%

Growth

Metric AJG BWIN Insurance Brokers median
Revenue growth (TTM) 26.32% 18.95% 7.09%
EPS growth (last fiscal year) (11.69%) (28.21%) —
Revenue growth, 5-year CAGR 14.76% 44.25% 9.30%
Net income growth, 5-year CAGR 12.78% 0.00% 0.00%

Health

Metric AJG BWIN Insurance Brokers median
Debt to equity 0.50 1.73 0.19
Current ratio 1.05 1.07 1.55
Net debt to EBITDA 2.95 6.39 0.89

Dividend

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

Size

Metric AJG BWIN Insurance Brokers median
Market cap 58.21b 4.47b 1.44b

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