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AJG vs. MSCI: A Head-to-Head Stock Comparison

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Here’s a clear look at AJG and MSCI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAJGMSCI
Company NameArthur J. Gallagher & Co.MSCI Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryInsuranceCapital Markets
Market Capitalization77.59 billion USD44.43 billion USD
ExchangeNYSENYSE
Listing DateJune 20, 1984November 15, 2007
Security TypeCommon StockCommon Stock

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.

AJG vs. MSCI: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAJGMSCI
5-Day Price Return1.99%1.51%
13-Week Price Return-12.06%0.28%
26-Week Price Return-7.28%0.34%
52-Week Price Return5.58%2.45%
Month-to-Date Return4.78%2.30%
Year-to-Date Return6.03%-4.29%
10-Day Avg. Volume1.52M0.55M
3-Month Avg. Volume1.42M0.62M
3-Month Volatility22.99%26.84%
Beta0.741.35

Profitability

Return on Equity (TTM)

AJG

8.45%

Insurance Industry

Max
29.03%
Q3
18.11%
Median
13.90%
Q1
10.42%
Min
-0.64%

AJG’s Return on Equity of 8.45% is in the lower quartile for the Insurance industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

MSCI

108.67%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

MSCI’s Return on Equity of 108.67% is exceptionally high, placing it well beyond the typical range for the Capital Markets industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AJG vs. MSCI: A comparison of their Return on Equity (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Net Profit Margin (TTM)

AJG

13.16%

Insurance Industry

Max
26.78%
Q3
14.06%
Median
9.15%
Q1
5.48%
Min
-7.05%

AJG’s Net Profit Margin of 13.16% is aligned with the median group of its peers in the Insurance industry. This indicates its ability to convert revenue into profit is typical for the sector.

MSCI

39.46%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

A Net Profit Margin of 39.46% places MSCI in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

AJG vs. MSCI: A comparison of their Net Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Operating Profit Margin (TTM)

AJG

21.19%

Insurance Industry

Max
35.49%
Q3
19.49%
Median
14.35%
Q1
8.53%
Min
-5.25%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

MSCI

53.86%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

An Operating Profit Margin of 53.86% places MSCI in the upper quartile for the Capital Markets industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AJG vs. MSCI: A comparison of their Operating Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Profitability at a Glance

SymbolAJGMSCI
Return on Equity (TTM)8.45%108.67%
Return on Assets (TTM)2.38%21.86%
Net Profit Margin (TTM)13.16%39.46%
Operating Profit Margin (TTM)21.19%53.86%
Gross Profit Margin (TTM)46.51%82.18%

Financial Strength

Current Ratio (MRQ)

AJG

1.36

Insurance Industry

Max
2.97
Q3
1.33
Median
0.55
Q1
0.15
Min
0.00

For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

MSCI

0.86

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

AJG vs. MSCI: A comparison of their Current Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AJG

0.56

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.22
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

MSCI

6.80

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

AJG vs. MSCI: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Interest Coverage Ratio (TTM)

AJG

5.92

Insurance Industry

Max
43.68
Q3
20.84
Median
9.56
Q1
3.34
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

MSCI

9.26

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

AJG vs. MSCI: A comparison of their Interest Coverage Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Financial Strength at a Glance

SymbolAJGMSCI
Current Ratio (MRQ)1.360.86
Quick Ratio (MRQ)1.360.77
Debt-to-Equity Ratio (MRQ)0.566.80
Interest Coverage Ratio (TTM)5.929.26

Growth

Revenue Growth

AJG vs. MSCI: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AJG vs. MSCI: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AJG

0.77%

Insurance Industry

Max
8.23%
Q3
4.54%
Median
3.42%
Q1
1.97%
Min
0.00%

AJG’s Dividend Yield of 0.77% is in the lower quartile for the Insurance industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

MSCI

1.21%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

MSCI’s Dividend Yield of 1.21% is in the lower quartile for the Capital Markets industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

AJG vs. MSCI: A comparison of their Dividend Yield (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend Payout Ratio (TTM)

AJG

36.32%

Insurance Industry

Max
168.02%
Q3
85.57%
Median
50.71%
Q1
22.04%
Min
0.00%

AJG’s Dividend Payout Ratio of 36.32% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MSCI

45.34%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

MSCI’s Dividend Payout Ratio of 45.34% is within the typical range for the Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AJG vs. MSCI: A comparison of their Dividend Payout Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend at a Glance

SymbolAJGMSCI
Dividend Yield (TTM)0.77%1.21%
Dividend Payout Ratio (TTM)36.32%45.34%

Valuation

Price-to-Earnings Ratio (TTM)

AJG

47.03

Insurance Industry

Max
28.91
Q3
17.76
Median
13.63
Q1
10.02
Min
2.89

At 47.03, AJG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Insurance 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

37.60

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

A P/E Ratio of 37.60 places MSCI in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

AJG vs. MSCI: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Sales Ratio (TTM)

AJG

6.19

Insurance Industry

Max
3.72
Q3
1.98
Median
1.23
Q1
0.81
Min
0.23

With a P/S Ratio of 6.19, AJG trades at a valuation that eclipses even the highest in the Insurance industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

MSCI

14.84

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

With a P/S Ratio of 14.84, MSCI trades at a valuation that eclipses even the highest in the Capital Markets industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AJG vs. MSCI: A comparison of their Price-to-Sales Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Book Ratio (MRQ)

AJG

3.56

Insurance Industry

Max
4.37
Q3
2.48
Median
1.68
Q1
1.19
Min
0.19

AJG’s P/B Ratio of 3.56 is in the upper tier for the Insurance industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

MSCI

42.21

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

At 42.21, MSCI’s P/B Ratio is at an extreme premium to the Capital Markets industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

AJG vs. MSCI: A comparison of their Price-to-Book Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Valuation at a Glance

SymbolAJGMSCI
Price-to-Earnings Ratio (TTM)47.0337.60
Price-to-Sales Ratio (TTM)6.1914.84
Price-to-Book Ratio (MRQ)3.5642.21
Price-to-Free Cash Flow Ratio (TTM)30.5632.60