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AJG vs. ARES: A Head-to-Head Stock Comparison

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Here’s a clear look at AJG and ARES, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAJGARES
Company NameArthur J. Gallagher & Co.Ares Management Corporation
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryInsuranceCapital Markets
Market Capitalization77.59 billion USD58.46 billion USD
ExchangeNYSENYSE
Listing DateJune 20, 1984May 2, 2014
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AJG and ARES 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.

AJG vs. ARES: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAJGARES
5-Day Price Return1.99%-6.05%
13-Week Price Return-12.06%6.10%
26-Week Price Return-7.28%-2.96%
52-Week Price Return5.58%23.76%
Month-to-Date Return4.78%-3.56%
Year-to-Date Return6.03%1.07%
10-Day Avg. Volume1.52M1.27M
3-Month Avg. Volume1.42M1.51M
3-Month Volatility22.99%25.97%
Beta0.741.51

Profitability

Return on Equity (TTM)

AJG

8.45%

Insurance Industry

Max
29.03%
Q3
18.11%
Median
13.90%
Q1
10.42%
Min
-0.64%

AJG’s Return on Equity of 8.45% is in the lower quartile for the Insurance industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ARES

13.30%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

ARES’s Return on Equity of 13.30% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

AJG vs. ARES: A comparison of their Return on Equity (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Net Profit Margin (TTM)

AJG

13.16%

Insurance Industry

Max
26.78%
Q3
14.06%
Median
9.15%
Q1
5.48%
Min
-7.05%

AJG’s Net Profit Margin of 13.16% is aligned with the median group of its peers in the Insurance industry. This indicates its ability to convert revenue into profit is typical for the sector.

ARES

9.94%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

Falling into the lower quartile for the Capital Markets industry, ARES’s Net Profit Margin of 9.94% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

AJG vs. ARES: A comparison of their Net Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Operating Profit Margin (TTM)

AJG

21.19%

Insurance Industry

Max
35.49%
Q3
19.49%
Median
14.35%
Q1
8.53%
Min
-5.25%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

ARES

17.40%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

ARES’s Operating Profit Margin of 17.40% is in the lower quartile for the Capital Markets industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

AJG vs. ARES: A comparison of their Operating Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Profitability at a Glance

SymbolAJGARES
Return on Equity (TTM)8.45%13.30%
Return on Assets (TTM)2.38%1.85%
Net Profit Margin (TTM)13.16%9.94%
Operating Profit Margin (TTM)21.19%17.40%
Gross Profit Margin (TTM)46.51%--

Financial Strength

Current Ratio (MRQ)

AJG

1.36

Insurance Industry

Max
2.97
Q3
1.33
Median
0.55
Q1
0.15
Min
0.00

For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ARES

0.31

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

AJG vs. ARES: A comparison of their Current Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AJG

0.56

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.22
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

ARES

2.93

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

AJG vs. ARES: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Interest Coverage Ratio (TTM)

AJG

5.92

Insurance Industry

Max
43.68
Q3
20.84
Median
9.56
Q1
3.34
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

ARES

--

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

AJG vs. ARES: A comparison of their Interest Coverage Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Financial Strength at a Glance

SymbolAJGARES
Current Ratio (MRQ)1.360.31
Quick Ratio (MRQ)1.360.31
Debt-to-Equity Ratio (MRQ)0.562.93
Interest Coverage Ratio (TTM)5.92--

Growth

Revenue Growth

AJG vs. ARES: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AJG vs. ARES: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AJG

0.77%

Insurance Industry

Max
8.23%
Q3
4.54%
Median
3.42%
Q1
1.97%
Min
0.00%

AJG’s Dividend Yield of 0.77% is in the lower quartile for the Insurance industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ARES

4.01%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

ARES’s Dividend Yield of 4.01% is consistent with its peers in the Capital Markets industry, providing a dividend return that is standard for its sector.

AJG vs. ARES: A comparison of their Dividend Yield (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend Payout Ratio (TTM)

AJG

36.32%

Insurance Industry

Max
168.02%
Q3
85.57%
Median
50.71%
Q1
22.04%
Min
0.00%

AJG’s Dividend Payout Ratio of 36.32% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ARES

323.31%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

At 323.31%, ARES’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Capital Markets industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

AJG vs. ARES: A comparison of their Dividend Payout Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend at a Glance

SymbolAJGARES
Dividend Yield (TTM)0.77%4.01%
Dividend Payout Ratio (TTM)36.32%323.31%

Valuation

Price-to-Earnings Ratio (TTM)

AJG

47.03

Insurance Industry

Max
28.91
Q3
17.76
Median
13.63
Q1
10.02
Min
2.89

At 47.03, AJG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Insurance industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ARES

80.55

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

At 80.55, ARES’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Capital Markets industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

AJG vs. ARES: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Sales Ratio (TTM)

AJG

6.19

Insurance Industry

Max
3.72
Q3
1.98
Median
1.23
Q1
0.81
Min
0.23

With a P/S Ratio of 6.19, AJG trades at a valuation that eclipses even the highest in the Insurance industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ARES

8.01

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

ARES’s P/S Ratio of 8.01 is in the upper echelon for the Capital Markets 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.

AJG vs. ARES: A comparison of their Price-to-Sales Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Book Ratio (MRQ)

AJG

3.56

Insurance Industry

Max
4.37
Q3
2.48
Median
1.68
Q1
1.19
Min
0.19

AJG’s P/B Ratio of 3.56 is in the upper tier for the Insurance industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ARES

12.97

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

At 12.97, ARES’s P/B Ratio is at an extreme premium to the Capital Markets industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

AJG vs. ARES: A comparison of their Price-to-Book Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Valuation at a Glance

SymbolAJGARES
Price-to-Earnings Ratio (TTM)47.0380.55
Price-to-Sales Ratio (TTM)6.198.01
Price-to-Book Ratio (MRQ)3.5612.97
Price-to-Free Cash Flow Ratio (TTM)30.569.72