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

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

Company Overview

COF’s market capitalization of 141.41 billion USD is significantly greater than AJG’s 81.47 billion USD, highlighting its more substantial market valuation.

COF carries a higher beta at 1.13, indicating it’s more sensitive to market moves, while AJG (beta: 0.75) exhibits greater stability.

SymbolAJGCOF
Company NameArthur J. Gallagher & Co.Capital One Financial Corporation
CountryUSUS
SectorFinancial ServicesFinancial Services
IndustryInsurance - BrokersFinancial - Credit Services
CEOJ. Patrick Gallagher Jr.Richard D. Fairbank
Price318.1 USD220.91 USD
Market Cap81.47 billion USD141.41 billion USD
Beta0.751.13
ExchangeNYSENYSE
IPO DateJune 20, 1984November 16, 1994
ADRNoNo

Historical Performance

This chart compares the performance of AJG and COF 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. COF: Growth of a $10,000 investment over the past one year.

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.

COF

7.95%

Financial - Credit Services Industry

Max
34.05%
Q3
18.70%
Median
10.57%
Q1
3.55%
Min
-12.12%

COF’s Return on Equity of 7.95% is on par with the norm for the Financial - Credit Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

AJG vs. COF: A comparison of their ROE against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

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.

COF

3.88%

Financial - Credit Services Industry

Max
68.11%
Q3
32.26%
Median
9.52%
Q1
3.37%
Min
-7.03%

Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Credit Services industry.

AJG vs. COF: A comparison of their ROIC against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

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.

COF

8.98%

Financial - Credit Services Industry

Max
39.42%
Q3
20.10%
Median
12.91%
Q1
5.82%
Min
-14.80%

COF’s Net Profit Margin of 8.98% is aligned with the median group of its peers in the Financial - Credit Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

AJG vs. COF: A comparison of their Net Profit Margin against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

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.

COF

11.16%

Financial - Credit Services Industry

Max
77.26%
Q3
42.86%
Median
17.99%
Q1
10.82%
Min
-14.94%

COF’s Operating Profit Margin of 11.16% is around the midpoint for the Financial - Credit Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

AJG vs. COF: A comparison of their Operating Margin against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

Profitability at a Glance

SymbolAJGCOF
Return on Equity (TTM)9.41%7.95%
Return on Assets (TTM)2.10%0.99%
Return on Invested Capital (TTM)5.85%3.88%
Net Profit Margin (TTM)12.96%8.98%
Operating Profit Margin (TTM)23.06%11.16%
Gross Profit Margin (TTM)55.08%52.18%

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.

COF

0.15

Financial - Credit Services Industry

Max
8.15
Q3
4.39
Median
2.62
Q1
1.06
Min
0.15

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

AJG vs. COF: A comparison of their Current Ratio against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

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.

COF

0.66

Financial - Credit Services Industry

Max
4.69
Q3
2.55
Median
1.20
Q1
0.55
Min
0.00

COF’s Debt-to-Equity Ratio of 0.66 is typical for the Financial - Credit Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AJG vs. COF: A comparison of their D/E Ratio against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

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.

COF

0.42

Financial - Credit Services Industry

Max
17.48
Q3
7.42
Median
1.59
Q1
0.38
Min
-7.77

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Credit Services industry.

AJG vs. COF: A comparison of their Interest Coverage against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

Financial Strength at a Glance

SymbolAJGCOF
Current Ratio (TTM)1.440.15
Quick Ratio (TTM)1.440.15
Debt-to-Equity Ratio (TTM)0.040.66
Debt-to-Asset Ratio (TTM)0.010.08
Net Debt-to-EBITDA Ratio (TTM)-4.68-0.73
Interest Coverage Ratio (TTM)29.400.42

Growth

The following charts compare key year-over-year (YoY) growth metrics for AJG and COF. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AJG vs. COF: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AJG vs. COF: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AJG vs. COF: A comparison of their annual year-over-year 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.

COF

1.09%

Financial - Credit Services Industry

Max
14.68%
Q3
2.97%
Median
1.03%
Q1
0.00%
Min
0.00%

COF’s Dividend Yield of 1.09% is consistent with its peers in the Financial - Credit Services industry, providing a dividend return that is standard for its sector.

AJG vs. COF: A comparison of their Dividend Yield against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

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.

COF

23.80%

Financial - Credit Services Industry

Max
169.58%
Q3
38.15%
Median
18.30%
Q1
0.00%
Min
0.00%

COF’s Dividend Payout Ratio of 23.80% is within the typical range for the Financial - Credit Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AJG vs. COF: A comparison of their Payout Ratio against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

Dividend at a Glance

SymbolAJGCOF
Dividend Yield (TTM)0.79%1.09%
Dividend Payout Ratio (TTM)35.97%23.80%

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.

COF

17.36

Financial - Credit Services Industry

Max
42.04
Q3
25.88
Median
12.28
Q1
9.55
Min
3.09

COF’s P/E Ratio of 17.36 is within the middle range for the Financial - Credit Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AJG vs. COF: A comparison of their P/E Ratio against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

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.

COF

0.93

Financial - Credit Services Industry

Max
2.76
Q3
1.57
Median
0.82
Q1
0.51
Min
0.06

COF’s Forward PEG Ratio of 0.93 is within the middle range of its peers in the Financial - Credit Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

AJG vs. COF: A comparison of their Forward PEG Ratio against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

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.

COF

2.61

Financial - Credit Services Industry

Max
6.24
Q3
3.02
Median
1.54
Q1
0.75
Min
0.32

The P/S Ratio is often not a primary valuation tool in the Financial - Credit Services industry.

AJG vs. COF: A comparison of their P/S Ratio against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

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.

COF

1.33

Financial - Credit Services Industry

Max
3.58
Q3
2.84
Median
1.28
Q1
0.84
Min
0.07

COF’s P/B Ratio of 1.33 is within the conventional range for the Financial - Credit Services 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.

AJG vs. COF: A comparison of their P/B Ratio against their respective Insurance - Brokers and Financial - Credit Services industry benchmarks.

Valuation at a Glance

SymbolAJGCOF
Price-to-Earnings Ratio (P/E, TTM)46.2117.36
Forward PEG Ratio (TTM)3.320.93
Price-to-Sales Ratio (P/S, TTM)6.772.61
Price-to-Book Ratio (P/B, TTM)3.231.33
Price-to-Free Cash Flow Ratio (P/FCF, TTM)32.268.34
EV-to-EBITDA (TTM)19.3614.47
EV-to-Sales (TTM)5.462.48