AJG vs. BSBR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AJG and BSBR, 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 substantially larger than BSBR’s 40.87 billion USD, indicating a significant difference in their market valuations.
AJG’s beta of 0.75 points to significantly higher volatility compared to BSBR (beta: 0.45), suggesting AJG has greater potential for both gains and losses relative to market movements.
BSBR 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 | BSBR |
|---|---|---|
| Company Name | Arthur J. Gallagher & Co. | Banco Santander (Brasil) S.A. |
| Country | US | BR |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Banks - Regional |
| CEO | J. Patrick Gallagher Jr. | Mario Roberto Opice Leao |
| Price | 318.1 USD | 5.47 USD |
| Market Cap | 81.47 billion USD | 40.87 billion USD |
| Beta | 0.75 | 0.45 |
| Exchange | NYSE | NYSE |
| IPO Date | June 20, 1984 | October 7, 2009 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AJG and BSBR 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.
BSBR
11.28%
Banks - Regional Industry
- Max
- 19.20%
- Q3
- 11.87%
- Median
- 9.48%
- Q1
- 6.66%
- Min
- -0.15%
BSBR’s Return on Equity of 11.28% is on par with the norm for the Banks - Regional industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
BSBR
1.96%
Banks - Regional Industry
- Max
- 13.33%
- Q3
- 7.16%
- Median
- 5.31%
- Q1
- 2.87%
- Min
- -3.49%
Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Regional 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.
BSBR
10.00%
Banks - Regional Industry
- Max
- 32.03%
- Q3
- 21.35%
- Median
- 16.99%
- Q1
- 12.69%
- Min
- 0.27%
Falling into the lower quartile for the Banks - Regional industry, BSBR’s Net Profit Margin of 10.00% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
BSBR
14.45%
Banks - Regional Industry
- Max
- 40.01%
- Q3
- 26.24%
- Median
- 21.14%
- Q1
- 15.85%
- Min
- 1.50%
BSBR’s Operating Profit Margin of 14.45% is in the lower quartile for the Banks - Regional industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AJG | BSBR |
|---|---|---|
| Return on Equity (TTM) | 9.41% | 11.28% |
| Return on Assets (TTM) | 2.10% | 1.07% |
| Return on Invested Capital (TTM) | 5.85% | 1.96% |
| Net Profit Margin (TTM) | 12.96% | 10.00% |
| Operating Profit Margin (TTM) | 23.06% | 14.45% |
| Gross Profit Margin (TTM) | 55.08% | 32.96% |
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.
BSBR
0.49
Banks - Regional Industry
- Max
- 0.39
- Q3
- 0.22
- Median
- 0.15
- Q1
- 0.10
- Min
- 0.01
For the Banks - Regional 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.
BSBR
1.24
Banks - Regional Industry
- Max
- 1.74
- Q3
- 0.81
- Median
- 0.42
- Q1
- 0.18
- Min
- 0.00
BSBR’s leverage is in the upper quartile of the Banks - Regional industry, with a Debt-to-Equity Ratio of 1.24. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
BSBR
0.23
Banks - Regional Industry
- Max
- 1.58
- Q3
- 0.84
- Median
- 0.59
- Q1
- 0.35
- Min
- -0.35
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Regional industry.
Financial Strength at a Glance
| Symbol | AJG | BSBR |
|---|---|---|
| Current Ratio (TTM) | 1.44 | 0.49 |
| Quick Ratio (TTM) | 1.44 | 0.49 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 1.24 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.12 |
| Net Debt-to-EBITDA Ratio (TTM) | -4.68 | -3.57 |
| Interest Coverage Ratio (TTM) | 29.40 | 0.23 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AJG and BSBR. 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.
BSBR
11.65%
Banks - Regional Industry
- Max
- 11.72%
- Q3
- 4.07%
- Median
- 3.00%
- Q1
- 1.68%
- Min
- 0.00%
With a Dividend Yield of 11.65%, BSBR offers a more attractive income stream than most of its peers in the Banks - Regional 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.
BSBR
40.98%
Banks - Regional Industry
- Max
- 155.35%
- Q3
- 50.05%
- Median
- 34.14%
- Q1
- 18.61%
- Min
- 0.00%
BSBR’s Dividend Payout Ratio of 40.98% is within the typical range for the Banks - Regional industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AJG | BSBR |
|---|---|---|
| Dividend Yield (TTM) | 0.79% | 11.65% |
| Dividend Payout Ratio (TTM) | 35.97% | 40.98% |
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.
BSBR
16.30
Banks - Regional Industry
- Max
- 22.32
- Q3
- 15.38
- Median
- 12.31
- Q1
- 10.72
- Min
- 4.30
A P/E Ratio of 16.30 places BSBR in the upper quartile for the Banks - Regional industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
BSBR
1.29
Banks - Regional Industry
- Max
- 4.03
- Q3
- 2.13
- Median
- 1.25
- Q1
- 0.71
- Min
- 0.02
BSBR’s Forward PEG Ratio of 1.29 is within the middle range of its peers in the Banks - Regional industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
BSBR
1.03
Banks - Regional Industry
- Max
- 4.28
- Q3
- 2.76
- Median
- 2.17
- Q1
- 1.71
- Min
- 0.55
The P/S Ratio is often not a primary valuation tool in the Banks - Regional 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.
BSBR
1.81
Banks - Regional Industry
- Max
- 1.99
- Q3
- 1.35
- Median
- 1.09
- Q1
- 0.92
- Min
- 0.33
BSBR’s P/B Ratio of 1.81 is in the upper tier for the Banks - Regional 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.
Valuation at a Glance
| Symbol | AJG | BSBR |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 46.21 | 16.30 |
| Forward PEG Ratio (TTM) | 3.32 | 1.29 |
| Price-to-Sales Ratio (P/S, TTM) | 6.77 | 1.03 |
| Price-to-Book Ratio (P/B, TTM) | 3.23 | 1.81 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 32.26 | 4.43 |
| EV-to-EBITDA (TTM) | 19.36 | 2.66 |
| EV-to-Sales (TTM) | 5.46 | 0.44 |