Arthur J. Gallagher & Co. (AJG) vs Marsh (MRSH)

Arthur J. Gallagher & Co. and Marsh are both Insurance Brokers companies. Marsh is the larger, with a market value of $81.1B against $58.2B — 1.4× the size. Marsh trades at the lower P/E: 20.8× against 37.8×. Arthur J. Gallagher & Co. grew revenue faster over the last twelve months: 26.3% against 8.33%. Marsh has the higher net margin (14.2% vs 9.95%) and the higher return on invested capital (18.5% vs 4.79%). Both pay a dividend; Marsh yields more (1.52% vs 1.00%). Across the 23 metrics below, Marsh leads on 19 and Arthur J. Gallagher & Co. on 4.

Valuation

Metric AJG MRSH Insurance Brokers median
P/E 37.82 20.82 25.35
P/S 3.77 2.94 2.10
P/B 2.50 5.32 2.81
Price to free cash flow 25.96 17.23 18.44
EV/EBITDA 17.63 12.54 12.36
EV/Sales 4.44 3.12 3.00
Earnings yield 2.64% 4.80% 2.64%
Free cash flow yield 3.85% 5.80% 2.30%

Profitability

Metric AJG MRSH Insurance Brokers median
Gross margin 42.95% 100.00% 42.95%
Operating margin 16.70% 21.62% 15.37%
Net margin 9.95% 14.24% 8.77%
Free cash flow margin 14.50% 17.06% 3.89%
Return on equity 6.70% 25.34% 0.00%
Return on assets 1.94% 6.73% 2.23%
Return on invested capital 4.79% 18.49% 5.27%

Growth

Metric AJG MRSH Insurance Brokers median
Revenue growth (TTM) 26.32% 8.33% 7.09%
EPS growth (last fiscal year) (11.69%) 3.06% —
Revenue growth, 5-year CAGR 14.76% 9.39% 9.30%
Net income growth, 5-year CAGR 12.78% 15.59% 0.00%

Health

Metric AJG MRSH Insurance Brokers median
Debt to equity 0.50 1.22 0.19
Current ratio 1.05 1.14 1.55
Net debt to EBITDA 2.95 0.58 0.89

Dividend

Metric AJG MRSH Insurance Brokers median
Dividend yield 1.00% 1.52% 1.36%
Payout ratio 0.41 0.36 0.00

Size

Metric AJG MRSH Insurance Brokers median
Market cap 58.21b 81.09b 1.44b

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