AIG vs. AJG: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AIG and AJG, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
AJG stands out with 86.44 billion USD in market value—about 1.82× AIG’s market cap of 47.62 billion USD.
With betas of 0.70 for AIG and 0.78 for AJG, both show similar volatility profiles relative to the overall market.
| Symbol | AIG | AJG |
|---|---|---|
| Company Name | American International Group, Inc. | Arthur J. Gallagher & Co. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Insurance - Brokers |
| CEO | Mr. Peter Salvatore Zaffino | Mr. J. Patrick Gallagher Jr. |
| Price | 82.63 USD | 337.53 USD |
| Market Cap | 47.62 billion USD | 86.44 billion USD |
| Beta | 0.70 | 0.78 |
| Exchange | NYSE | NYSE |
| IPO Date | January 2, 1973 | June 20, 1984 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AIG and AJG over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
The section examines key financial ratios to assess the valuation of AIG and AJG based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- AIG posts a negative P/E of -30.90, reflecting last year’s net loss, while AJG at 49.03 signals healthy earnings.
- AIG posts a negative forward PEG of -1.65, hinting at anticipated earnings decline, whereas AJG at 3.55 has projections for stable or growing earnings.
| Symbol | AIG | AJG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -30.90 | 49.03 |
| Forward PEG Ratio (TTM) | -1.65 | 3.55 |
| Price-to-Sales Ratio (P/S, TTM) | 1.75 | 7.19 |
| Price-to-Book Ratio (P/B, TTM) | 1.43 | 3.42 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 17.65 | 34.23 |
| EV-to-EBITDA (TTM) | 8.68 | 20.83 |
| EV-to-Sales (TTM) | 2.01 | 5.87 |
| EV-to-Free Cash Flow (TTM) | 20.32 | 27.96 |
Dividend Comparison
AIG’s dividend yield of 1.94% is about 167% higher than AJG’s 0.73%, underscoring its stronger focus on returning cash to shareholders.
| Symbol | AIG | AJG |
|---|---|---|
| Dividend Yield (TTM) | 1.94% | 0.73% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AIG and AJG, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- AIG’s current ratio of 0.00 signals a possible liquidity squeeze, while AJG at 1.44 comfortably covers its short-term obligations.
- AIG’s quick ratio of 0.00 suggests it may struggle to cover immediate liabilities without selling inventory or raising cash, whereas AJG at 1.44 maintains a comfortable buffer of liquid assets.
| Symbol | AIG | AJG |
|---|---|---|
| Current Ratio (TTM) | 0.00 | 1.44 |
| Quick Ratio (TTM) | 0.00 | 1.44 |
| Debt-to-Equity Ratio (TTM) | 0.21 | 0.04 |
| Debt-to-Assets Ratio (TTM) | 0.05 | 0.01 |
| Interest Coverage Ratio (TTM) | 8.29 | 29.40 |