AJG vs. MRSH: Arthur J. Gallagher vs. Marsh & McLennan Companies Stock Comparison
How do Arthur J. Gallagher (AJG) and Marsh & McLennan Companies (MRSH) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Arthur J. Gallagher (AJG) and Marsh & McLennan Companies (MRSH) are both classified in the Insurance Brokers sub-industry within the broader Insurance industry, placing them in the closest GICS peer bucket.
| Profile Item | AJG | MRSH |
|---|---|---|
| Name | Arthur J. Gallagher & Co. | Marsh & McLennan Companies, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Financials | Financials |
| GICS Industry Group | Insurance | Insurance |
| GICS Industry | Insurance | Insurance |
| GICS Sub-Industry | Insurance Brokers | Insurance Brokers |
| Market Capitalization | 67.34 billion USD | 88.64 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | June 20, 1984 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | AJG | MRSH |
|---|---|---|
| Total Return (1Y) | -11.52% | -8.03% |
| Total Return (3Y, Annualized) | 5.28% | -0.09% |
| Total Return (5Y, Annualized) | 13.65% | 4.71% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | AJG | MRSH |
|---|---|---|
| Volatility (1Y, Annualized) | 30.61% | 26.14% |
| Beta (5Y) | 0.53 | 0.58 |
| Max Drawdown (5Y) | -44.40% | -34.36% |
| Avg. Volume (3M) | 1.60M | 2.43M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AJG | MRSH |
|---|---|---|
| Sharpe Ratio (1Y) | -0.51 | -0.46 |
| Sortino Ratio (1Y) | -0.70 | -0.65 |
Profitability
ROE (TTM)
Marsh & McLennan Companies (MRSH) at 25.90% sits in the top ROE quartile, while Arthur J. Gallagher (AJG) at 6.72% is in the bottom quartile, showing a clear gap in returns on equity.
AJG
Insurance industry group
6.72%
- Max
- 38.99%
- Q3
- 22.13%
- Median
- 15.10%
- Q1
- 10.16%
- AJG
- 6.72%
- Min
- -3.97%
MRSH
Insurance industry group
25.90%
- Max
- 38.99%
- MRSH
- 25.90%
- Q3
- 22.13%
- Median
- 15.10%
- Q1
- 10.16%
- Min
- -3.97%
Net Margin (TTM)
Both Arthur J. Gallagher (AJG) at 10.38% and Marsh & McLennan Companies (MRSH) at 14.24% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.
AJG
Insurance industry group
10.38%
- Max
- 37.68%
- Q3
- 19.27%
- Median
- 11.38%
- AJG
- 10.38%
- Q1
- 5.91%
- Min
- -10.79%
MRSH
Insurance industry group
14.24%
- Max
- 37.68%
- Q3
- 19.27%
- MRSH
- 14.24%
- Median
- 11.38%
- Q1
- 5.91%
- Min
- -10.79%
Operating Margin (TTM)
Neither side reports a meaningful operating margin: for Arthur J. Gallagher (AJG) in Insurance and Marsh & McLennan Companies (MRSH) in Insurance, funding costs are part of the core business, so net margin and ROE are the cleaner profitability reads.
Profitability Metrics
| Metric | AJG | MRSH |
|---|---|---|
| ROE (TTM) | 6.72% | 25.90% |
| ROA (TTM) | 2.32% | 7.24% |
| Net Margin (TTM) | 10.38% | 14.24% |
| Operating Margin (TTM) | -- | -- |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Both Arthur J. Gallagher (AJG) at 20.66% and Marsh & McLennan Companies (MRSH) at 10.32% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Arthur J. Gallagher (AJG) at -11.69% and Marsh & McLennan Companies (MRSH) at 3.06% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | AJG | MRSH |
|---|---|---|
| Revenue Growth (YoY) | 20.66% | 10.32% |
| Revenue Growth (3Y CAGR) | 17.70% | 9.20% |
| EPS Growth (YoY) | -11.69% | 3.06% |
| EPS Growth (3Y CAGR) | 3.41% | 11.75% |
Financial Strength
Current Ratio (MRQ)
current ratio doesn’t apply on either side: Arthur J. Gallagher (AJG) in Insurance and Marsh & McLennan Companies (MRSH) in Insurance both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.
Debt / Equity (MRQ)
debt-to-equity ratio is set aside for both: Arthur J. Gallagher (AJG) in Insurance and Marsh & McLennan Companies (MRSH) in Insurance run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.
Financial Strength Metrics
| Metric | AJG | MRSH |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Both Arthur J. Gallagher (AJG) at 1.01% and Marsh & McLennan Companies (MRSH) at 1.96% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
AJG
Insurance industry group
1.01%
- Max
- 4.75%
- Q3
- 2.39%
- Median
- 1.22%
- AJG
- 1.01%
- Q1
- 0.00%
- Min
- 0.00%
MRSH
Insurance industry group
1.96%
- Max
- 4.75%
- Q3
- 2.39%
- MRSH
- 1.96%
- Median
- 1.22%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both Arthur J. Gallagher (AJG) at 44.78% and Marsh & McLennan Companies (MRSH) at 43.96% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.
AJG
Insurance industry group
44.78%
- Max
- 79.14%
- AJG
- 44.78%
- Q3
- 34.33%
- Median
- 15.16%
- Q1
- 0.00%
- Min
- 0.00%
MRSH
Insurance industry group
43.96%
- Max
- 79.14%
- MRSH
- 43.96%
- Q3
- 34.33%
- Median
- 15.16%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | AJG | MRSH |
|---|---|---|
| Dividend Yield (TTM) | 1.01% | 1.96% |
| Dividend Payout Ratio (TTM) | 44.78% | 43.96% |
Valuation
P/E Ratio (TTM)
Both look expensive on trailing earnings: Marsh & McLennan Companies (MRSH) at 22.68 sits in the richer P/E ratio quartile, and Arthur J. Gallagher (AJG) at 43.49 is richer still, above its industry range.
AJG
Insurance industry group
43.49
- AJG
- 43.49
- Max
- 26.55
- Q3
- 18.58
- Median
- 12.20
- Q1
- 8.75
- Min
- 3.69
MRSH
Insurance industry group
22.68
- Max
- 26.55
- MRSH
- 22.68
- Q3
- 18.58
- Median
- 12.20
- Q1
- 8.75
- Min
- 3.69
P/S Ratio (TTM)
Both look expensive on sales: Marsh & McLennan Companies (MRSH) at 3.17 sits in the upper P/S ratio quartile, and Arthur J. Gallagher (AJG) at 4.46 prices even higher, above its industry range.
AJG
Insurance industry group
4.46
- AJG
- 4.46
- Max
- 4.11
- Q3
- 2.24
- Median
- 1.25
- Q1
- 0.89
- Min
- 0.08
MRSH
Insurance industry group
3.17
- Max
- 4.11
- MRSH
- 3.17
- Q3
- 2.24
- Median
- 1.25
- Q1
- 0.89
- Min
- 0.08
P/B Ratio (MRQ)
Both look rich against book: Arthur J. Gallagher (AJG) at 2.84 sits in the upper P/B ratio quartile, and Marsh & McLennan Companies (MRSH) at 5.85 prices even higher, above its industry range.
AJG
Insurance industry group
2.84
- Max
- 4.03
- AJG
- 2.84
- Q3
- 2.56
- Median
- 1.81
- Q1
- 1.21
- Min
- 0.44
MRSH
Insurance industry group
5.85
- MRSH
- 5.85
- Max
- 4.03
- Q3
- 2.56
- Median
- 1.81
- Q1
- 1.21
- Min
- 0.44
Valuation Metrics
| Metric | AJG | MRSH |
|---|---|---|
| P/E Ratio (TTM) | 43.49 | 22.68 |
| P/S Ratio (TTM) | 4.46 | 3.17 |
| P/B Ratio (MRQ) | 2.84 | 5.85 |
| Free Cash Flow Yield (TTM) | -- | -- |