AJG vs. LPLA: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AJG and LPLA, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
AJG dominates in value with a market cap of 86.44 billion USD, eclipsing LPLA’s 30.23 billion USD by roughly 2.86×.
With betas of 0.78 for AJG and 0.64 for LPLA, both show similar volatility profiles relative to the overall market.
| Symbol | AJG | LPLA |
|---|---|---|
| Company Name | Arthur J. Gallagher & Co. | LPL Financial Holdings Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Financial - Capital Markets |
| CEO | Mr. J. Patrick Gallagher Jr. | Mr. Richard Steinmeier |
| Price | 337.53 USD | 377.95 USD |
| Market Cap | 86.44 billion USD | 30.23 billion USD |
| Beta | 0.78 | 0.64 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 20, 1984 | November 18, 2010 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AJG and LPLA over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
The section examines key financial ratios to assess the valuation of AJG and LPLA based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- LPLA reports a negative Price-to-Free Cash Flow ratio of -89.81, showing a cash flow shortfall that could threaten its operational sustainability, while AJG at 34.23 maintains positive cash flow.
| Symbol | AJG | LPLA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 49.03 | 25.90 |
| Forward PEG Ratio (TTM) | 3.55 | 1.25 |
| Price-to-Sales Ratio (P/S, TTM) | 7.19 | 2.29 |
| Price-to-Book Ratio (P/B, TTM) | 3.42 | 9.03 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 34.23 | -89.81 |
| EV-to-EBITDA (TTM) | 20.83 | 12.08 |
| EV-to-Sales (TTM) | 5.87 | 2.19 |
| EV-to-Free Cash Flow (TTM) | 27.96 | -86.16 |
Dividend Comparison
AJG’s dividend yield of 0.73% is about 205% higher than LPLA’s 0.24%, underscoring its stronger focus on returning cash to shareholders.
| Symbol | AJG | LPLA |
|---|---|---|
| Dividend Yield (TTM) | 0.73% | 0.24% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AJG and LPLA, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- LPLA’s current ratio of 0.00 indicates its assets may not cover near-term debts, whereas AJG at 1.44 maintains healthy liquidity.
- LPLA posts a quick ratio of 0.00, indicating limited coverage of short-term debts from its most liquid assets—while AJG at 1.44 enjoys stronger liquidity resilience.
| Symbol | AJG | LPLA |
|---|---|---|
| Current Ratio (TTM) | 1.44 | 0.00 |
| Quick Ratio (TTM) | 1.44 | 0.00 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.00 |
| Debt-to-Assets Ratio (TTM) | 0.01 | 0.00 |
| Interest Coverage Ratio (TTM) | 29.40 | 4.93 |