AJG vs. MS: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AJG and MS, 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
MS stands out with 201.02 billion USD in market value—about 2.33× AJG’s market cap of 86.44 billion USD.
MS carries a higher beta at 1.30, indicating it’s more sensitive to market moves, while AJG remains steadier at 0.78.
| Symbol | AJG | MS |
|---|---|---|
| Company Name | Arthur J. Gallagher & Co. | Morgan Stanley |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Financial - Capital Markets |
| CEO | Mr. J. Patrick Gallagher Jr. | Mr. Edward N. Pick |
| Price | 337.53 USD | 125.3 USD |
| Market Cap | 86.44 billion USD | 201.02 billion USD |
| Beta | 0.78 | 1.30 |
| Exchange | NYSE | NYSE |
| IPO Date | June 20, 1984 | February 23, 1993 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AJG and MS 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 MS based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- MS reports a negative Price-to-Free Cash Flow ratio of -95.72, showing a cash flow shortfall that could threaten its operational sustainability, while AJG at 34.23 maintains positive cash flow.
| Symbol | AJG | MS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 49.03 | 13.89 |
| Forward PEG Ratio (TTM) | 3.55 | 1.97 |
| Price-to-Sales Ratio (P/S, TTM) | 7.19 | 1.90 |
| Price-to-Book Ratio (P/B, TTM) | 3.42 | 1.90 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 34.23 | -95.72 |
| EV-to-EBITDA (TTM) | 20.83 | 20.41 |
| EV-to-Sales (TTM) | 5.87 | 4.60 |
| EV-to-Free Cash Flow (TTM) | 27.96 | -231.32 |
Dividend Comparison
MS stands out with a 2.95% dividend yield—around 307% above AJG’s 0.73%—highlighting its emphasis on generous payouts.
| Symbol | AJG | MS |
|---|---|---|
| Dividend Yield (TTM) | 0.73% | 2.95% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AJG and MS, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- MS’s current ratio of 0.66 indicates its assets may not cover near-term debts, whereas AJG at 1.44 maintains healthy liquidity.
- MS posts a quick ratio of 0.66, indicating limited coverage of short-term debts from its most liquid assets—while AJG at 1.44 enjoys stronger liquidity resilience.
- MS is highly leveraged (debt-to-equity ratio 3.45), elevating both potential gains and risks, compared to AJG at 0.04, which maintains a steadier capital structure.
- MS’s low interest coverage (0.41) means it doesn't cover interest from operating earnings. AJG (at 29.40) meets its interest obligations.
| Symbol | AJG | MS |
|---|---|---|
| Current Ratio (TTM) | 1.44 | 0.66 |
| Quick Ratio (TTM) | 1.44 | 0.66 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 3.45 |
| Debt-to-Assets Ratio (TTM) | 0.01 | 0.30 |
| Interest Coverage Ratio (TTM) | 29.40 | 0.41 |