AJG vs. BBVA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AJG and BBVA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AJG’s market capitalization stands at 81.47 billion USD, while BBVA’s is 89.98 billion USD, indicating their market valuations are broadly comparable.
BBVA carries a higher beta at 1.42, indicating it’s more sensitive to market moves, while AJG (beta: 0.75) exhibits greater stability.
BBVA is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AJG, on the other hand, is a domestic entity.
| Symbol | AJG | BBVA |
|---|---|---|
| Company Name | Arthur J. Gallagher & Co. | Banco Bilbao Vizcaya Argentaria, S.A. |
| Country | US | ES |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Banks - Diversified |
| CEO | J. Patrick Gallagher Jr. | Onur Genc |
| Price | 318.1 USD | 15.63 USD |
| Market Cap | 81.47 billion USD | 89.98 billion USD |
| Beta | 0.75 | 1.42 |
| Exchange | NYSE | NYSE |
| IPO Date | June 20, 1984 | December 15, 1988 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AJG and BBVA 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
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.
BBVA
19.46%
Banks - Diversified Industry
- Max
- 20.93%
- Q3
- 14.73%
- Median
- 12.33%
- Q1
- 9.14%
- Min
- 5.86%
In the upper quartile for the Banks - Diversified industry, BBVA’s Return on Equity of 19.46% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
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.
BBVA
4.52%
Banks - Diversified Industry
- Max
- 4.52%
- Q3
- 2.95%
- Median
- 1.89%
- Q1
- 0.86%
- Min
- 0.18%
Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified industry.
Net Profit Margin
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.
BBVA
23.70%
Banks - Diversified Industry
- Max
- 33.40%
- Q3
- 26.40%
- Median
- 19.24%
- Q1
- 14.99%
- Min
- 7.95%
BBVA’s Net Profit Margin of 23.70% is aligned with the median group of its peers in the Banks - Diversified industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
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.
BBVA
36.60%
Banks - Diversified Industry
- Max
- 50.90%
- Q3
- 37.76%
- Median
- 28.44%
- Q1
- 15.73%
- Min
- 8.60%
BBVA’s Operating Profit Margin of 36.60% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AJG | BBVA |
|---|---|---|
| Return on Equity (TTM) | 9.41% | 19.46% |
| Return on Assets (TTM) | 2.10% | 1.37% |
| Return on Invested Capital (TTM) | 5.85% | 4.52% |
| Net Profit Margin (TTM) | 12.96% | 23.70% |
| Operating Profit Margin (TTM) | 23.06% | 36.60% |
| Gross Profit Margin (TTM) | 55.08% | 82.62% |
Financial Strength
Current Ratio
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.
BBVA
0.28
Banks - Diversified Industry
- Max
- 0.67
- Q3
- 0.49
- Median
- 0.39
- Q1
- 0.28
- Min
- 0.06
For the Banks - Diversified industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio
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.
BBVA
1.96
Banks - Diversified Industry
- Max
- 4.98
- Q3
- 3.65
- Median
- 3.13
- Q1
- 1.73
- Min
- 0.09
BBVA’s Debt-to-Equity Ratio of 1.96 is typical for the Banks - Diversified industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
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.
BBVA
0.93
Banks - Diversified Industry
- Max
- 0.98
- Q3
- 0.78
- Median
- 0.55
- Q1
- 0.31
- Min
- 0.09
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Diversified industry.
Financial Strength at a Glance
| Symbol | AJG | BBVA |
|---|---|---|
| Current Ratio (TTM) | 1.44 | 0.28 |
| Quick Ratio (TTM) | 1.44 | 0.28 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 1.96 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.14 |
| Net Debt-to-EBITDA Ratio (TTM) | -4.68 | 2.67 |
| Interest Coverage Ratio (TTM) | 29.40 | 0.93 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AJG and BBVA. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
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.
BBVA
5.42%
Banks - Diversified Industry
- Max
- 7.73%
- Q3
- 4.16%
- Median
- 3.24%
- Q1
- 2.27%
- Min
- 0.00%
With a Dividend Yield of 5.42%, BBVA offers a more attractive income stream than most of its peers in the Banks - Diversified industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
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.
BBVA
37.08%
Banks - Diversified Industry
- Max
- 84.94%
- Q3
- 39.11%
- Median
- 26.91%
- Q1
- 0.00%
- Min
- 0.00%
BBVA’s Dividend Payout Ratio of 37.08% is within the typical range for the Banks - Diversified industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AJG | BBVA |
|---|---|---|
| Dividend Yield (TTM) | 0.79% | 5.42% |
| Dividend Payout Ratio (TTM) | 35.97% | 37.08% |
Valuation
Price-to-Earnings Ratio
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.
BBVA
7.38
Banks - Diversified Industry
- Max
- 14.13
- Q3
- 13.37
- Median
- 11.90
- Q1
- 9.29
- Min
- 7.43
BBVA’s P/E Ratio of 7.38 is below the typical range for the Banks - Diversified industry. This may indicate that the stock is potentially undervalued, or it could reflect market concerns about the company’s future prospects.
Forward P/E to Growth Ratio
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.
BBVA
1.45
Banks - Diversified Industry
- Max
- 1.98
- Q3
- 1.41
- Median
- 1.15
- Q1
- 0.77
- Min
- 0.45
A Forward PEG Ratio of 1.45 places BBVA in the upper quartile for the Banks - Diversified industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
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.
BBVA
1.67
Banks - Diversified Industry
- Max
- 4.15
- Q3
- 2.92
- Median
- 2.29
- Q1
- 1.83
- Min
- 0.94
The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.
Price-to-Book Ratio
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.
BBVA
1.41
Banks - Diversified Industry
- Max
- 1.89
- Q3
- 1.47
- Median
- 1.23
- Q1
- 1.10
- Min
- 0.65
BBVA’s P/B Ratio of 1.41 is within the conventional range for the Banks - Diversified 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.
Valuation at a Glance
| Symbol | AJG | BBVA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 46.21 | 7.38 |
| Forward PEG Ratio (TTM) | 3.32 | 1.45 |
| Price-to-Sales Ratio (P/S, TTM) | 6.77 | 1.67 |
| Price-to-Book Ratio (P/B, TTM) | 3.23 | 1.41 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 32.26 | 15.58 |
| EV-to-EBITDA (TTM) | 19.36 | 6.83 |
| EV-to-Sales (TTM) | 5.46 | 2.74 |