AFG vs. AJG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFG and AJG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AJG’s market capitalization of 81.47 billion USD is significantly greater than AFG’s 10.64 billion USD, highlighting its more substantial market valuation.
With betas of 0.71 for AFG and 0.75 for AJG, both stocks show similar sensitivity to overall market movements.
| Symbol | AFG | AJG |
|---|---|---|
| Company Name | American Financial Group, Inc. | Arthur J. Gallagher & Co. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Property & Casualty | Insurance - Brokers |
| CEO | Stephen Craig Lindner | J. Patrick Gallagher Jr. |
| Price | 127.43 USD | 318.1 USD |
| Market Cap | 10.64 billion USD | 81.47 billion USD |
| Beta | 0.71 | 0.75 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | June 20, 1984 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AFG and AJG by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AFG
17.81%
Insurance - Property & Casualty Industry
- Max
- 28.14%
- Q3
- 17.51%
- Median
- 12.75%
- Q1
- 8.26%
- Min
- 0.61%
In the upper quartile for the Insurance - Property & Casualty industry, AFG’s Return on Equity of 17.81% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
AJG
9.41%
Insurance - Brokers Industry
- Max
- 40.40%
- Q3
- 30.52%
- Median
- 22.48%
- Q1
- 4.38%
- Min
- -5.38%
AJG’s Return on Equity of 9.41% is on par with the norm for the Insurance - Brokers industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AFG
27.67%
Insurance - Property & Casualty Industry
- Max
- 21.89%
- Q3
- 10.09%
- Median
- 3.90%
- Q1
- 0.89%
- Min
- -7.26%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Property & Casualty industry.
AJG
5.85%
Insurance - Brokers Industry
- Max
- 11.62%
- Q3
- 11.18%
- Median
- 8.38%
- Q1
- 2.57%
- Min
- -1.51%
AJG’s Return on Invested Capital of 5.85% is in line with the norm for the Insurance - Brokers industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
AFG
13.06%
Insurance - Property & Casualty Industry
- Max
- 21.98%
- Q3
- 13.09%
- Median
- 9.18%
- Q1
- 6.10%
- Min
- 2.13%
AFG’s Net Profit Margin of 13.06% is aligned with the median group of its peers in the Insurance - Property & Casualty industry. This indicates its ability to convert revenue into profit is typical for the sector.
AJG
12.96%
Insurance - Brokers Industry
- Max
- 21.33%
- Q3
- 15.86%
- Median
- 10.63%
- Q1
- 1.06%
- Min
- -2.28%
AJG’s Net Profit Margin of 12.96% is aligned with the median group of its peers in the Insurance - Brokers industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AFG
14.02%
Insurance - Property & Casualty Industry
- Max
- 31.70%
- Q3
- 17.32%
- Median
- 12.57%
- Q1
- 7.38%
- Min
- 4.31%
AFG’s Operating Profit Margin of 14.02% is around the midpoint for the Insurance - Property & Casualty industry, indicating that its efficiency in managing core business operations is typical for the sector.
AJG
23.06%
Insurance - Brokers Industry
- Max
- 28.73%
- Q3
- 23.24%
- Median
- 21.46%
- Q1
- 10.89%
- Min
- 5.35%
AJG’s Operating Profit Margin of 23.06% is around the midpoint for the Insurance - Brokers industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AFG | AJG |
|---|---|---|
| Return on Equity (TTM) | 17.81% | 9.41% |
| Return on Assets (TTM) | 2.64% | 2.10% |
| Return on Invested Capital (TTM) | 27.67% | 5.85% |
| Net Profit Margin (TTM) | 13.06% | 12.96% |
| Operating Profit Margin (TTM) | 14.02% | 23.06% |
| Gross Profit Margin (TTM) | 69.59% | 55.08% |
Financial Strength
Current Ratio
AFG
--
Insurance - Property & Casualty Industry
- Max
- 51.52
- Q3
- 30.84
- Median
- 20.50
- Q1
- 6.61
- Min
- 0.41
Current Ratio data for AFG is currently unavailable.
AJG
1.44
Insurance - Brokers Industry
- Max
- 1.90
- Q3
- 1.76
- Median
- 1.29
- Q1
- 1.14
- Min
- 1.05
AJG’s Current Ratio of 1.44 aligns with the median group of the Insurance - Brokers industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AFG
0.34
Insurance - Property & Casualty Industry
- Max
- 0.58
- Q3
- 0.36
- Median
- 0.27
- Q1
- 0.14
- Min
- 0.01
AFG’s Debt-to-Equity Ratio of 0.34 is typical for the Insurance - Property & Casualty industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
AJG
0.04
Insurance - Brokers Industry
- Max
- 4.59
- Q3
- 2.12
- Median
- 0.59
- Q1
- 0.07
- Min
- 0.01
Falling into the lower quartile for the Insurance - Brokers industry, AJG’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
AFG
11.29
Insurance - Property & Casualty Industry
- Max
- 39.40
- Q3
- 22.24
- Median
- 12.38
- Q1
- 6.68
- Min
- -12.40
AFG’s Interest Coverage Ratio of 11.29 is positioned comfortably within the norm for the Insurance - Property & Casualty industry, indicating a standard and healthy capacity to cover its interest payments.
AJG
29.40
Insurance - Brokers Industry
- Max
- 29.40
- Q3
- 16.65
- Median
- 7.25
- Q1
- 4.20
- Min
- 1.60
AJG’s Interest Coverage Ratio of 29.40 is in the upper quartile for the Insurance - Brokers industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AFG | AJG |
|---|---|---|
| Current Ratio (TTM) | -- | 1.44 |
| Quick Ratio (TTM) | -- | 1.44 |
| Debt-to-Equity Ratio (TTM) | 0.34 | 0.04 |
| Debt-to-Asset Ratio (TTM) | 0.05 | 0.01 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.31 | -4.68 |
| Interest Coverage Ratio (TTM) | 11.29 | 29.40 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AFG and AJG. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AFG
7.15%
Insurance - Property & Casualty Industry
- Max
- 8.17%
- Q3
- 3.10%
- Median
- 1.79%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 7.15%, AFG offers a more attractive income stream than most of its peers in the Insurance - Property & Casualty industry, signaling a strong commitment to shareholder returns.
AJG
0.79%
Insurance - Brokers Industry
- Max
- 2.63%
- Q3
- 1.34%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
AJG’s Dividend Yield of 0.79% is consistent with its peers in the Insurance - Brokers industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AFG
94.24%
Insurance - Property & Casualty Industry
- Max
- 115.20%
- Q3
- 35.27%
- Median
- 22.19%
- Q1
- 3.16%
- Min
- 0.00%
AFG’s Dividend Payout Ratio of 94.24% is in the upper quartile for the Insurance - Property & Casualty industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
AJG
35.97%
Insurance - Brokers Industry
- Max
- 45.22%
- Q3
- 39.19%
- Median
- 29.49%
- Q1
- 3.85%
- Min
- 0.00%
AJG’s Dividend Payout Ratio of 35.97% is within the typical range for the Insurance - Brokers industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AFG | AJG |
|---|---|---|
| Dividend Yield (TTM) | 7.15% | 0.79% |
| Dividend Payout Ratio (TTM) | 94.24% | 35.97% |
Valuation
Price-to-Earnings Ratio
AFG
13.36
Insurance - Property & Casualty Industry
- Max
- 35.83
- Q3
- 23.28
- Median
- 14.49
- Q1
- 11.91
- Min
- 4.47
AFG’s P/E Ratio of 13.36 is within the middle range for the Insurance - Property & Casualty industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
AJG
46.21
Insurance - Brokers Industry
- Max
- 45.50
- Q3
- 35.20
- Median
- 30.00
- Q1
- 28.34
- Min
- 26.42
At 46.21, AJG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Insurance - Brokers industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
AFG
1.41
Insurance - Property & Casualty Industry
- Max
- 2.53
- Q3
- 1.90
- Median
- 1.33
- Q1
- 0.86
- Min
- 0.01
AFG’s Forward PEG Ratio of 1.41 is within the middle range of its peers in the Insurance - Property & Casualty industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
AJG
3.32
Insurance - Brokers Industry
- Max
- 3.32
- Q3
- 3.00
- Median
- 2.77
- Q1
- 2.41
- Min
- 2.09
AJG’s Forward PEG Ratio of 3.32 is exceptionally high for the Insurance - Brokers industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
Price-to-Sales Ratio
AFG
1.74
Insurance - Property & Casualty Industry
- Max
- 3.76
- Q3
- 2.39
- Median
- 1.80
- Q1
- 1.01
- Min
- 0.50
The P/S Ratio is often not a primary valuation tool in the Insurance - Property & Casualty industry.
AJG
6.77
Insurance - Brokers Industry
- Max
- 7.38
- Q3
- 5.34
- Median
- 4.27
- Q1
- 2.32
- Min
- 0.27
AJG’s P/S Ratio of 6.77 is in the upper echelon for the Insurance - Brokers industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
AFG
2.43
Insurance - Property & Casualty Industry
- Max
- 5.34
- Q3
- 2.95
- Median
- 1.92
- Q1
- 1.31
- Min
- 0.52
AFG’s P/B Ratio of 2.43 is within the conventional range for the Insurance - Property & Casualty industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
AJG
3.23
Insurance - Brokers Industry
- Max
- 10.90
- Q3
- 8.10
- Median
- 6.93
- Q1
- 4.15
- Min
- 1.12
AJG’s P/B Ratio of 3.23 is in the lower quartile for the Insurance - Brokers industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | AFG | AJG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 13.36 | 46.21 |
| Forward PEG Ratio (TTM) | 1.41 | 3.32 |
| Price-to-Sales Ratio (P/S, TTM) | 1.74 | 6.77 |
| Price-to-Book Ratio (P/B, TTM) | 2.43 | 3.23 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 7.47 | 32.26 |
| EV-to-EBITDA (TTM) | 16.68 | 19.36 |
| EV-to-Sales (TTM) | 1.77 | 5.46 |