AJG vs. BX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AJG and BX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BX’s market capitalization of 183.04 billion USD is significantly greater than AJG’s 81.47 billion USD, highlighting its more substantial market valuation.
BX carries a higher beta at 1.64, indicating it’s more sensitive to market moves, while AJG (beta: 0.75) exhibits greater stability.
| Symbol | AJG | BX |
|---|---|---|
| Company Name | Arthur J. Gallagher & Co. | Blackstone Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Asset Management |
| CEO | J. Patrick Gallagher Jr. | Stephen Allen Schwarzman |
| Price | 318.1 USD | 155.13 USD |
| Market Cap | 81.47 billion USD | 183.04 billion USD |
| Beta | 0.75 | 1.64 |
| Exchange | NYSE | NYSE |
| IPO Date | June 20, 1984 | June 22, 2007 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AJG and BX 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.
BX
33.88%
Asset Management Industry
- Max
- 34.25%
- Q3
- 18.22%
- Median
- 11.24%
- Q1
- 5.81%
- Min
- -5.72%
In the upper quartile for the Asset Management industry, BX’s Return on Equity of 33.88% 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.
BX
11.16%
Asset Management Industry
- Max
- 42.18%
- Q3
- 20.06%
- Median
- 8.68%
- Q1
- 3.13%
- Min
- -16.42%
BX’s Return on Invested Capital of 11.16% is in line with the norm for the Asset Management industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
BX
22.79%
Asset Management Industry
- Max
- 91.66%
- Q3
- 57.81%
- Median
- 29.48%
- Q1
- 15.70%
- Min
- -27.65%
BX’s Net Profit Margin of 22.79% is aligned with the median group of its peers in the Asset Management 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.
BX
54.04%
Asset Management Industry
- Max
- 99.76%
- Q3
- 78.28%
- Median
- 34.76%
- Q1
- 21.75%
- Min
- -48.25%
BX’s Operating Profit Margin of 54.04% is around the midpoint for the Asset Management industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AJG | BX |
|---|---|---|
| Return on Equity (TTM) | 9.41% | 33.88% |
| Return on Assets (TTM) | 2.10% | 5.62% |
| Return on Invested Capital (TTM) | 5.85% | 11.16% |
| Net Profit Margin (TTM) | 12.96% | 22.79% |
| Operating Profit Margin (TTM) | 23.06% | 54.04% |
| Gross Profit Margin (TTM) | 55.08% | 95.94% |
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.
BX
--
Asset Management Industry
- Max
- 12.44
- Q3
- 5.76
- Median
- 3.04
- Q1
- 1.03
- Min
- 0.01
Current Ratio data for BX is currently unavailable.
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.
BX
1.68
Asset Management Industry
- Max
- 2.62
- Q3
- 1.42
- Median
- 0.76
- Q1
- 0.34
- Min
- 0.01
BX’s leverage is in the upper quartile of the Asset Management industry, with a Debt-to-Equity Ratio of 1.68. 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.
BX
13.30
Asset Management Industry
- Max
- 13.30
- Q3
- 6.30
- Median
- 2.71
- Q1
- 1.00
- Min
- -6.91
BX’s Interest Coverage Ratio of 13.30 is in the upper quartile for the Asset Management industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AJG | BX |
|---|---|---|
| Current Ratio (TTM) | 1.44 | -- |
| Quick Ratio (TTM) | 1.44 | -- |
| Debt-to-Equity Ratio (TTM) | 0.04 | 1.68 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.30 |
| Net Debt-to-EBITDA Ratio (TTM) | -4.68 | 1.81 |
| Interest Coverage Ratio (TTM) | 29.40 | 13.30 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AJG and BX. 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.
BX
2.61%
Asset Management Industry
- Max
- 26.09%
- Q3
- 11.60%
- Median
- 6.37%
- Q1
- 2.75%
- Min
- 0.00%
BX’s Dividend Yield of 2.61% is in the lower quartile for the Asset Management industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
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.
BX
127.66%
Asset Management Industry
- Max
- 1,034.88%
- Q3
- 127.70%
- Median
- 75.15%
- Q1
- 34.21%
- Min
- 0.00%
BX’s Dividend Payout Ratio of 127.66% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | AJG | BX |
|---|---|---|
| Dividend Yield (TTM) | 0.79% | 2.61% |
| Dividend Payout Ratio (TTM) | 35.97% | 127.66% |
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.
BX
47.06
Asset Management Industry
- Max
- 38.72
- Q3
- 23.40
- Median
- 11.45
- Q1
- 8.80
- Min
- 1.54
At 47.06, BX’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Asset Management industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
BX
2.61
Asset Management Industry
- Max
- 6.38
- Q3
- 3.23
- Median
- 1.55
- Q1
- 0.89
- Min
- 0.02
BX’s Forward PEG Ratio of 2.61 is within the middle range of its peers in the Asset Management 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.
BX
25.15
Asset Management Industry
- Max
- 13.75
- Q3
- 7.92
- Median
- 4.87
- Q1
- 3.51
- Min
- 0.02
With a P/S Ratio of 25.15, BX trades at a valuation that eclipses even the highest in the Asset Management industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
BX
15.01
Asset Management Industry
- Max
- 5.33
- Q3
- 2.75
- Median
- 1.06
- Q1
- 0.87
- Min
- 0.00
The P/B Ratio is often not a primary valuation metric for the Asset Management industry.
Valuation at a Glance
| Symbol | AJG | BX |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 46.21 | 47.06 |
| Forward PEG Ratio (TTM) | 3.32 | 2.61 |
| Price-to-Sales Ratio (P/S, TTM) | 6.77 | 25.15 |
| Price-to-Book Ratio (P/B, TTM) | 3.23 | 15.01 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 32.26 | 82.10 |
| EV-to-EBITDA (TTM) | 19.36 | 48.07 |
| EV-to-Sales (TTM) | 5.46 | 26.13 |