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

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

Company Profile

SymbolAJGLPLA
Company NameArthur J. Gallagher & Co.LPL Financial Holdings Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryInsuranceCapital Markets
Market Capitalization77.59 billion USD28.43 billion USD
ExchangeNYSENasdaqGS
Listing DateJune 20, 1984November 18, 2010
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolAJGLPLA
5-Day Price Return1.99%-0.19%
13-Week Price Return-12.06%-7.80%
26-Week Price Return-7.28%-4.58%
52-Week Price Return5.58%60.46%
Month-to-Date Return4.78%-10.22%
Year-to-Date Return6.03%8.82%
10-Day Avg. Volume1.52M0.69M
3-Month Avg. Volume1.42M0.71M
3-Month Volatility22.99%29.73%
Beta0.740.66

Profitability

Return on Equity (TTM)

AJG

8.45%

Insurance Industry

Max
29.03%
Q3
18.11%
Median
13.90%
Q1
10.42%
Min
-0.64%

AJG’s Return on Equity of 8.45% is in the lower quartile for the Insurance industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

LPLA

32.17%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

In the upper quartile for the Capital Markets industry, LPLA’s Return on Equity of 32.17% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AJG vs. LPLA: A comparison of their Return on Equity (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Net Profit Margin (TTM)

AJG

13.16%

Insurance Industry

Max
26.78%
Q3
14.06%
Median
9.15%
Q1
5.48%
Min
-7.05%

AJG’s Net Profit Margin of 13.16% is aligned with the median group of its peers in the Insurance industry. This indicates its ability to convert revenue into profit is typical for the sector.

LPLA

7.91%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

Falling into the lower quartile for the Capital Markets industry, LPLA’s Net Profit Margin of 7.91% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

AJG vs. LPLA: A comparison of their Net Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Operating Profit Margin (TTM)

AJG

21.19%

Insurance Industry

Max
35.49%
Q3
19.49%
Median
14.35%
Q1
8.53%
Min
-5.25%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

LPLA

12.86%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

LPLA’s Operating Profit Margin of 12.86% is in the lower quartile for the Capital Markets industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

AJG vs. LPLA: A comparison of their Operating Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Profitability at a Glance

SymbolAJGLPLA
Return on Equity (TTM)8.45%32.17%
Return on Assets (TTM)2.38%7.89%
Net Profit Margin (TTM)13.16%7.91%
Operating Profit Margin (TTM)21.19%12.86%
Gross Profit Margin (TTM)46.51%98.92%

Financial Strength

Current Ratio (MRQ)

AJG

1.36

Insurance Industry

Max
2.97
Q3
1.33
Median
0.55
Q1
0.15
Min
0.00

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

LPLA

3.05

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

AJG vs. LPLA: A comparison of their Current Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AJG

0.56

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.22
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

LPLA

1.44

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

AJG vs. LPLA: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Interest Coverage Ratio (TTM)

AJG

5.92

Insurance Industry

Max
43.68
Q3
20.84
Median
9.56
Q1
3.34
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

LPLA

6.08

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

AJG vs. LPLA: A comparison of their Interest Coverage Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Financial Strength at a Glance

SymbolAJGLPLA
Current Ratio (MRQ)1.363.05
Quick Ratio (MRQ)1.362.99
Debt-to-Equity Ratio (MRQ)0.561.44
Interest Coverage Ratio (TTM)5.926.08

Growth

Revenue Growth

AJG vs. LPLA: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AJG vs. LPLA: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AJG

0.77%

Insurance Industry

Max
8.23%
Q3
4.54%
Median
3.42%
Q1
1.97%
Min
0.00%

AJG’s Dividend Yield of 0.77% is in the lower quartile for the Insurance industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

LPLA

0.32%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

LPLA’s Dividend Yield of 0.32% is in the lower quartile for the Capital Markets industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

AJG vs. LPLA: A comparison of their Dividend Yield (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend Payout Ratio (TTM)

AJG

36.32%

Insurance Industry

Max
168.02%
Q3
85.57%
Median
50.71%
Q1
22.04%
Min
0.00%

AJG’s Dividend Payout Ratio of 36.32% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

LPLA

8.17%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

LPLA’s Dividend Payout Ratio of 8.17% is in the lower quartile for the Capital Markets industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

AJG vs. LPLA: A comparison of their Dividend Payout Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend at a Glance

SymbolAJGLPLA
Dividend Yield (TTM)0.77%0.32%
Dividend Payout Ratio (TTM)36.32%8.17%

Valuation

Price-to-Earnings Ratio (TTM)

AJG

47.03

Insurance Industry

Max
28.91
Q3
17.76
Median
13.63
Q1
10.02
Min
2.89

At 47.03, AJG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Insurance industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

LPLA

25.14

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

LPLA’s P/E Ratio of 25.14 is within the middle range for the Capital Markets 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. LPLA: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Sales Ratio (TTM)

AJG

6.19

Insurance Industry

Max
3.72
Q3
1.98
Median
1.23
Q1
0.81
Min
0.23

With a P/S Ratio of 6.19, AJG trades at a valuation that eclipses even the highest in the Insurance industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

LPLA

1.99

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

In the lower quartile for the Capital Markets industry, LPLA’s P/S Ratio of 1.99 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

AJG vs. LPLA: A comparison of their Price-to-Sales Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Book Ratio (MRQ)

AJG

3.56

Insurance Industry

Max
4.37
Q3
2.48
Median
1.68
Q1
1.19
Min
0.19

AJG’s P/B Ratio of 3.56 is in the upper tier for the Insurance 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.

LPLA

5.91

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

LPLA’s P/B Ratio of 5.91 is in the upper tier for the Capital Markets 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.

AJG vs. LPLA: A comparison of their Price-to-Book Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Valuation at a Glance

SymbolAJGLPLA
Price-to-Earnings Ratio (TTM)47.0325.14
Price-to-Sales Ratio (TTM)6.191.99
Price-to-Book Ratio (MRQ)3.565.91
Price-to-Free Cash Flow Ratio (TTM)30.5682.92