Arthur J. Gallagher & Co. (AJG) vs CorVel Corp. (CRVL)

Arthur J. Gallagher & Co. and CorVel Corp. are both Insurance Brokers companies. Arthur J. Gallagher & Co. is the larger, with a market value of $73.9B against $4.3B — 17.0× the size. CorVel Corp. trades at the lower P/E: 34.9× against 42.5×. Arthur J. Gallagher & Co. grew revenue faster over the last twelve months: 25.6% against 8.29%. CorVel Corp. has the higher net margin (12.0% vs 10.4%) and the higher return on invested capital (62.7% vs 5.07%). Across the 19 metrics below, CorVel Corp. leads on 12 and Arthur J. Gallagher & Co. on 7.

Valuation

Metric AJG CRVL Insurance Brokers median
P/E 42.47 34.94 21.74
P/S 4.42 4.16 2.96
P/B 3.00 9.78 3.00
Price to free cash flow 31.64 37.00 21.74
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 2.35% 2.86% 3.49%
Free cash flow yield 3.16% 2.70% 3.16%

Profitability

Metric AJG CRVL Insurance Brokers median
Gross margin 43.22% 25.52% 49.54%
Operating margin 17.15% 15.93% 15.76%
Net margin 10.38% 12.02% 8.19%
Free cash flow margin 0.00% 0.00% 3.58%
Return on equity 7.18% 30.64% 2.99%
Return on assets 2.15% 18.34% 2.33%
Return on invested capital 5.07% 62.74% 5.64%

Growth

Metric AJG CRVL Insurance Brokers median
Revenue growth (TTM) 25.58% 8.29% 9.77%
EPS growth (last fiscal year) (11.69%) 16.94% (8.67%)
Revenue growth, 5-year CAGR 14.76% 11.64% 9.30%
Net income growth, 5-year CAGR 12.78% 18.94% 0.00%

Health

Metric AJG CRVL Insurance Brokers median
Debt to equity 0.49 0.00 0.49
Current ratio 1.05 2.02 1.57
Net debt to EBITDA 2.95 (1.33) 1.20

Dividend

Metric AJG CRVL Insurance Brokers median
Dividend yield 0.98% — 1.03%
Payout ratio 0.42 — 0.33

Size

Metric AJG CRVL Insurance Brokers median
Market cap 73.88b 4.34b 2.12b

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