AJG vs. MSCI: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AJG and MSCI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AJG’s market capitalization of 81.47 billion USD is substantially larger than MSCI’s 45.47 billion USD, indicating a significant difference in their market valuations.
MSCI carries a higher beta at 1.33, indicating it’s more sensitive to market moves, while AJG (beta: 0.75) exhibits greater stability.
| Symbol | AJG | MSCI |
|---|---|---|
| Company Name | Arthur J. Gallagher & Co. | MSCI Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Financial - Data & Stock Exchanges |
| CEO | J. Patrick Gallagher Jr. | Henry A. Fernandez |
| Price | 318.1 USD | 587.74 USD |
| Market Cap | 81.47 billion USD | 45.47 billion USD |
| Beta | 0.75 | 1.33 |
| Exchange | NYSE | NYSE |
| IPO Date | June 20, 1984 | November 15, 2007 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AJG and MSCI 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.
Profitability
Return on Equity
AJG
9.41%
Insurance - Brokers Industry
- Max
- 40.40%
- Q3
- 30.52%
- Median
- 22.48%
- Q1
- 4.38%
- Min
- -5.38%
AJG’s Return on Equity of 9.41% is on par with the norm for the Insurance - Brokers industry, indicating its profitability relative to shareholder equity is typical for the sector.
MSCI
-134.96%
Financial - Data & Stock Exchanges Industry
- Max
- 26.26%
- Q3
- 23.14%
- Median
- 14.33%
- Q1
- 11.12%
- Min
- -0.64%
MSCI has a negative Return on Equity of -134.96%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Return on Invested Capital
AJG
5.85%
Insurance - Brokers Industry
- Max
- 11.62%
- Q3
- 11.18%
- Median
- 8.38%
- Q1
- 2.57%
- Min
- -1.51%
AJG’s Return on Invested Capital of 5.85% is in line with the norm for the Insurance - Brokers industry, reflecting a standard level of efficiency in generating profits from its capital base.
MSCI
33.19%
Financial - Data & Stock Exchanges Industry
- Max
- 18.31%
- Q3
- 14.86%
- Median
- 11.07%
- Q1
- 6.75%
- Min
- 4.04%
MSCI’s Return on Invested Capital of 33.19% is exceptionally high, placing it well beyond the typical range for the Financial - Data & Stock Exchanges industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
Net Profit Margin
AJG
12.96%
Insurance - Brokers Industry
- Max
- 21.33%
- Q3
- 15.86%
- Median
- 10.63%
- Q1
- 1.06%
- Min
- -2.28%
AJG’s Net Profit Margin of 12.96% is aligned with the median group of its peers in the Insurance - Brokers industry. This indicates its ability to convert revenue into profit is typical for the sector.
MSCI
39.08%
Financial - Data & Stock Exchanges Industry
- Max
- 39.08%
- Q3
- 31.63%
- Median
- 23.20%
- Q1
- 18.09%
- Min
- -0.88%
A Net Profit Margin of 39.08% places MSCI in the upper quartile for the Financial - Data & Stock Exchanges industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AJG
23.06%
Insurance - Brokers Industry
- Max
- 28.73%
- Q3
- 23.24%
- Median
- 21.46%
- Q1
- 10.89%
- Min
- 5.35%
AJG’s Operating Profit Margin of 23.06% is around the midpoint for the Insurance - Brokers industry, indicating that its efficiency in managing core business operations is typical for the sector.
MSCI
53.68%
Financial - Data & Stock Exchanges Industry
- Max
- 53.68%
- Q3
- 40.45%
- Median
- 31.81%
- Q1
- 24.66%
- Min
- 9.71%
An Operating Profit Margin of 53.68% places MSCI in the upper quartile for the Financial - Data & Stock Exchanges industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AJG | MSCI |
|---|---|---|
| Return on Equity (TTM) | 9.41% | -134.96% |
| Return on Assets (TTM) | 2.10% | 21.36% |
| Return on Invested Capital (TTM) | 5.85% | 33.19% |
| Net Profit Margin (TTM) | 12.96% | 39.08% |
| Operating Profit Margin (TTM) | 23.06% | 53.68% |
| Gross Profit Margin (TTM) | 55.08% | 80.57% |
Financial Strength
Current Ratio
AJG
1.44
Insurance - Brokers Industry
- Max
- 1.90
- Q3
- 1.76
- Median
- 1.29
- Q1
- 1.14
- Min
- 1.05
AJG’s Current Ratio of 1.44 aligns with the median group of the Insurance - Brokers industry, indicating that its short-term liquidity is in line with its sector peers.
MSCI
0.84
Financial - Data & Stock Exchanges Industry
- Max
- 1.60
- Q3
- 1.57
- Median
- 1.06
- Q1
- 0.96
- Min
- 0.62
MSCI’s Current Ratio of 0.84 falls into the lower quartile for the Financial - Data & Stock Exchanges industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AJG
0.04
Insurance - Brokers Industry
- Max
- 4.59
- Q3
- 2.12
- Median
- 0.59
- Q1
- 0.07
- Min
- 0.01
Falling into the lower quartile for the Insurance - Brokers industry, AJG’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
MSCI
-4.87
Financial - Data & Stock Exchanges Industry
- Max
- 1.09
- Q3
- 0.80
- Median
- 0.62
- Q1
- 0.36
- Min
- 0.04
MSCI has a Debt-to-Equity Ratio of -4.87, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
Interest Coverage Ratio
AJG
29.40
Insurance - Brokers Industry
- Max
- 29.40
- Q3
- 16.65
- Median
- 7.25
- Q1
- 4.20
- Min
- 1.60
AJG’s Interest Coverage Ratio of 29.40 is in the upper quartile for the Insurance - Brokers industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
MSCI
8.46
Financial - Data & Stock Exchanges Industry
- Max
- 27.44
- Q3
- 22.05
- Median
- 10.08
- Q1
- 6.79
- Min
- 1.01
MSCI’s Interest Coverage Ratio of 8.46 is positioned comfortably within the norm for the Financial - Data & Stock Exchanges industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AJG | MSCI |
|---|---|---|
| Current Ratio (TTM) | 1.44 | 0.84 |
| Quick Ratio (TTM) | 1.44 | 0.84 |
| Debt-to-Equity Ratio (TTM) | 0.04 | -4.87 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.87 |
| Net Debt-to-EBITDA Ratio (TTM) | -4.68 | 2.41 |
| Interest Coverage Ratio (TTM) | 29.40 | 8.46 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AJG and MSCI. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AJG
0.79%
Insurance - Brokers Industry
- Max
- 2.63%
- Q3
- 1.34%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
AJG’s Dividend Yield of 0.79% is consistent with its peers in the Insurance - Brokers industry, providing a dividend return that is standard for its sector.
MSCI
1.16%
Financial - Data & Stock Exchanges Industry
- Max
- 3.86%
- Q3
- 1.44%
- Median
- 1.06%
- Q1
- 0.73%
- Min
- 0.00%
MSCI’s Dividend Yield of 1.16% is consistent with its peers in the Financial - Data & Stock Exchanges industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AJG
35.97%
Insurance - Brokers Industry
- Max
- 45.22%
- Q3
- 39.19%
- Median
- 29.49%
- Q1
- 3.85%
- Min
- 0.00%
AJG’s Dividend Payout Ratio of 35.97% is within the typical range for the Insurance - Brokers industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
MSCI
45.68%
Financial - Data & Stock Exchanges Industry
- Max
- 106.40%
- Q3
- 44.44%
- Median
- 31.97%
- Q1
- 29.26%
- Min
- 0.00%
MSCI’s Dividend Payout Ratio of 45.68% is in the upper quartile for the Financial - Data & Stock Exchanges industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AJG | MSCI |
|---|---|---|
| Dividend Yield (TTM) | 0.79% | 1.16% |
| Dividend Payout Ratio (TTM) | 35.97% | 45.68% |
Valuation
Price-to-Earnings Ratio
AJG
46.21
Insurance - Brokers Industry
- Max
- 45.50
- Q3
- 35.20
- Median
- 30.00
- Q1
- 28.34
- Min
- 26.42
At 46.21, AJG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Insurance - Brokers industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
MSCI
39.96
Financial - Data & Stock Exchanges Industry
- Max
- 41.71
- Q3
- 40.17
- Median
- 37.47
- Q1
- 30.61
- Min
- 16.74
MSCI’s P/E Ratio of 39.96 is within the middle range for the Financial - Data & Stock Exchanges industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AJG
3.32
Insurance - Brokers Industry
- Max
- 3.32
- Q3
- 3.00
- Median
- 2.77
- Q1
- 2.41
- Min
- 2.09
AJG’s Forward PEG Ratio of 3.32 is exceptionally high for the Insurance - Brokers industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
MSCI
3.40
Financial - Data & Stock Exchanges Industry
- Max
- 4.54
- Q3
- 4.09
- Median
- 4.06
- Q1
- 3.33
- Min
- 2.36
MSCI’s Forward PEG Ratio of 3.40 is within the middle range of its peers in the Financial - Data & Stock Exchanges industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
AJG
6.77
Insurance - Brokers Industry
- Max
- 7.38
- Q3
- 5.34
- Median
- 4.27
- Q1
- 2.32
- Min
- 0.27
AJG’s P/S Ratio of 6.77 is in the upper echelon for the Insurance - Brokers industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
MSCI
15.56
Financial - Data & Stock Exchanges Industry
- Max
- 15.75
- Q3
- 12.42
- Median
- 9.37
- Q1
- 6.34
- Min
- 1.69
MSCI’s P/S Ratio of 15.56 is in the upper echelon for the Financial - Data & Stock Exchanges industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
AJG
3.23
Insurance - Brokers Industry
- Max
- 10.90
- Q3
- 8.10
- Median
- 6.93
- Q1
- 4.15
- Min
- 1.12
AJG’s P/B Ratio of 3.23 is in the lower quartile for the Insurance - Brokers industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
MSCI
-47.60
Financial - Data & Stock Exchanges Industry
- Max
- 8.57
- Q3
- 8.05
- Median
- 4.77
- Q1
- 3.69
- Min
- 1.19
MSCI has a negative P/B Ratio of -47.60, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.
Valuation at a Glance
| Symbol | AJG | MSCI |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 46.21 | 39.96 |
| Forward PEG Ratio (TTM) | 3.32 | 3.40 |
| Price-to-Sales Ratio (P/S, TTM) | 6.77 | 15.56 |
| Price-to-Book Ratio (P/B, TTM) | 3.23 | -47.60 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 32.26 | 31.50 |
| EV-to-EBITDA (TTM) | 19.36 | 27.83 |
| EV-to-Sales (TTM) | 5.46 | 17.04 |