AJG vs. MRSH: Arthur J. Gallagher vs. Marsh & McLennan Stock Comparison
How do Arthur J. Gallagher (AJG) and Marsh & McLennan (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 (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 | 68.71 billion USD | 93.90 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) | -4.00% | 7.30% |
| Total Return (3Y, Annualized) | 6.61% | 3.72% |
| Total Return (5Y, Annualized) | 11.31% | 4.77% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | AJG | MRSH |
|---|---|---|
| Volatility (1Y, Annualized) | 32.17% | 25.79% |
| Beta (5Y) | 0.48 | 0.54 |
| Max Drawdown (5Y) | -44.40% | -34.36% |
| Avg. Volume (3M) | 1.41M | 2.52M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AJG | MRSH |
|---|---|---|
| Sharpe Ratio (1Y) | -0.26 | 0.11 |
| Sortino Ratio (1Y) | -0.37 | 0.17 |
Profitability
ROE (TTM)
Marsh & McLennan (MRSH) at 27.24% 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
- 22.12%
- Median
- 14.68%
- Q1
- 10.07%
- AJG
- 6.72%
- Min
- -3.97%
MRSH
Insurance industry group
27.24%
- Max
- 38.99%
- MRSH
- 27.24%
- Q3
- 22.12%
- Median
- 14.68%
- Q1
- 10.07%
- Min
- -3.97%
Net Margin (TTM)
Both Arthur J. Gallagher (AJG) at 10.38% and Marsh & McLennan (MRSH) at 14.20% 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
- 18.79%
- Median
- 11.13%
- AJG
- 10.38%
- Q1
- 5.69%
- Min
- -10.79%
MRSH
Insurance industry group
14.20%
- Max
- 37.68%
- Q3
- 18.79%
- MRSH
- 14.20%
- Median
- 11.13%
- Q1
- 5.69%
- Min
- -10.79%
Operating Margin (TTM)
Neither side reports a meaningful operating margin: for Arthur J. Gallagher (AJG) in Insurance and Marsh & McLennan (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% | 27.24% |
| ROA (TTM) | 2.32% | 7.35% |
| Net Margin (TTM) | 10.38% | 14.20% |
| Operating Margin (TTM) | -- | -- |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Both Arthur J. Gallagher (AJG) at 20.66% and Marsh & McLennan (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
Marsh & McLennan (MRSH) at 3.06% is around its peer norm for EPS growth, while Arthur J. Gallagher (AJG) at -11.69% drops into the bottom quartile, signaling weaker earnings momentum.
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 (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 (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 1.00% and Marsh & McLennan (MRSH) at 1.90% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
AJG
Insurance industry group
1.00%
- Max
- 5.12%
- Q3
- 2.25%
- Median
- 1.14%
- AJG
- 1.00%
- Q1
- 0.00%
- Min
- 0.00%
MRSH
Insurance industry group
1.90%
- Max
- 5.12%
- Q3
- 2.25%
- MRSH
- 1.90%
- Median
- 1.14%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both Arthur J. Gallagher (AJG) at 44.78% and Marsh & McLennan (MRSH) at 44.14% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.
AJG
Insurance industry group
44.78%
- Max
- 78.97%
- AJG
- 44.78%
- Q3
- 35.81%
- Median
- 16.14%
- Q1
- 0.00%
- Min
- 0.00%
MRSH
Insurance industry group
44.14%
- Max
- 78.97%
- MRSH
- 44.14%
- Q3
- 35.81%
- Median
- 16.14%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | AJG | MRSH |
|---|---|---|
| Dividend Yield (TTM) | 1.00% | 1.90% |
| Dividend Payout Ratio (TTM) | 44.78% | 44.14% |
Valuation
P/E Ratio (TTM)
Both look expensive on trailing earnings: Marsh & McLennan (MRSH) at 23.62 sits in the richer P/E ratio quartile, and Arthur J. Gallagher (AJG) at 44.45 is richer still, above its industry range.
AJG
Insurance industry group
44.45
- AJG
- 44.45
- Max
- 30.74
- Q3
- 18.50
- Median
- 11.83
- Q1
- 8.70
- Min
- 2.58
MRSH
Insurance industry group
23.62
- Max
- 30.74
- MRSH
- 23.62
- Q3
- 18.50
- Median
- 11.83
- Q1
- 8.70
- Min
- 2.58
P/S Ratio (TTM)
Both Arthur J. Gallagher (AJG) at 4.55 and Marsh & McLennan (MRSH) at 3.30 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.
AJG
Insurance industry group
4.55
- AJG
- 4.55
- Max
- 4.55
- Q3
- 2.41
- Median
- 1.30
- Q1
- 0.87
- Min
- 0.07
MRSH
Insurance industry group
3.30
- Max
- 4.55
- MRSH
- 3.30
- Q3
- 2.41
- Median
- 1.30
- Q1
- 0.87
- Min
- 0.07
P/B Ratio (MRQ)
Arthur J. Gallagher (AJG) at 2.90 sits near its industry’s typical P/B ratio, while Marsh & McLennan (MRSH) at 6.40 prices above its benchmark range — MRSH looks rich relative to book.
AJG
Insurance industry group
2.90
- Max
- 5.37
- Q3
- 2.90
- AJG
- 2.90
- Median
- 1.86
- Q1
- 1.22
- Min
- 0.38
MRSH
Insurance industry group
6.40
- MRSH
- 6.40
- Max
- 5.37
- Q3
- 2.90
- Median
- 1.86
- Q1
- 1.22
- Min
- 0.38
Valuation Metrics
| Metric | AJG | MRSH |
|---|---|---|
| P/E Ratio (TTM) | 44.45 | 23.62 |
| P/S Ratio (TTM) | 4.55 | 3.30 |
| P/B Ratio (MRQ) | 2.90 | 6.40 |
| Free Cash Flow Yield (TTM) | -- | -- |