AJG vs. BAC: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AJG and BAC, 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
BAC stands out with 325.75 billion USD in market value—about 3.77× AJG’s market cap of 86.44 billion USD.
BAC carries a higher beta at 1.28, indicating it’s more sensitive to market moves, while AJG remains steadier at 0.78.
| Symbol | AJG | BAC |
|---|---|---|
| Company Name | Arthur J. Gallagher & Co. | Bank of America Corporation |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Banks - Diversified |
| CEO | Mr. J. Patrick Gallagher Jr. | Mr. Brian Thomas Moynihan |
| Price | 337.53 USD | 43.25 USD |
| Market Cap | 86.44 billion USD | 325.75 billion USD |
| Beta | 0.78 | 1.28 |
| Exchange | NYSE | NYSE |
| IPO Date | June 20, 1984 | February 21, 1973 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AJG and BAC 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
For a detailed comparison of valuation metrics between AJG and BAC, please refer to the table below.
| Symbol | AJG | BAC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 49.03 | 11.92 |
| Forward PEG Ratio (TTM) | 3.55 | 0.80 |
| Price-to-Sales Ratio (P/S, TTM) | 7.19 | 2.65 |
| Price-to-Book Ratio (P/B, TTM) | 3.42 | 1.12 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 34.23 | 48.37 |
| EV-to-EBITDA (TTM) | 20.83 | 15.23 |
| EV-to-Sales (TTM) | 5.87 | 6.29 |
| EV-to-Free Cash Flow (TTM) | 27.96 | 114.95 |
Dividend Comparison
BAC stands out with a 2.36% dividend yield—around 225% above AJG’s 0.73%—highlighting its emphasis on generous payouts.
| Symbol | AJG | BAC |
|---|---|---|
| Dividend Yield (TTM) | 0.73% | 2.36% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AJG and BAC, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- BAC’s current ratio of 0.66 indicates its assets may not cover near-term debts, whereas AJG at 1.44 maintains healthy liquidity.
- BAC posts a quick ratio of 0.66, indicating limited coverage of short-term debts from its most liquid assets—while AJG at 1.44 enjoys stronger liquidity resilience.
- BAC’s low interest coverage (0.36) means it doesn't cover interest from operating earnings. AJG (at 29.40) meets its interest obligations.
| Symbol | AJG | BAC |
|---|---|---|
| Current Ratio (TTM) | 1.44 | 0.66 |
| Quick Ratio (TTM) | 1.44 | 0.66 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 2.44 |
| Debt-to-Assets Ratio (TTM) | 0.01 | 0.22 |
| Interest Coverage Ratio (TTM) | 29.40 | 0.36 |