AJG vs. RGA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AJG and RGA, 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 RGA’s 13.07 billion USD, indicating a significant difference in their market valuations.
With betas of 0.75 for AJG and 0.63 for RGA, both stocks show similar sensitivity to overall market movements.
| Symbol | AJG | RGA |
|---|---|---|
| Company Name | Arthur J. Gallagher & Co. | Reinsurance Group of America, Incorporated |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Insurance - Reinsurance |
| CEO | J. Patrick Gallagher Jr. | Tony Cheng |
| Price | 318.1 USD | 197.79 USD |
| Market Cap | 81.47 billion USD | 13.07 billion USD |
| Beta | 0.75 | 0.63 |
| Exchange | NYSE | NYSE |
| IPO Date | June 20, 1984 | September 12, 2008 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AJG and RGA 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.
RGA
7.36%
Insurance - Reinsurance Industry
- Max
- 18.30%
- Q3
- 14.16%
- Median
- 8.39%
- Q1
- 7.08%
- Min
- 5.91%
RGA’s Return on Equity of 7.36% is on par with the norm for the Insurance - Reinsurance industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
RGA
0.62%
Insurance - Reinsurance Industry
- Max
- 126.30%
- Q3
- 60.66%
- Median
- 7.25%
- Q1
- 3.18%
- Min
- 0.62%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Reinsurance industry.
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.
RGA
3.77%
Insurance - Reinsurance Industry
- Max
- 21.27%
- Q3
- 12.90%
- Median
- 9.40%
- Q1
- 5.62%
- Min
- 3.77%
Falling into the lower quartile for the Insurance - Reinsurance industry, RGA’s Net Profit Margin of 3.77% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
RGA
5.12%
Insurance - Reinsurance Industry
- Max
- 17.83%
- Q3
- 15.41%
- Median
- 8.11%
- Q1
- 5.86%
- Min
- 4.12%
RGA’s Operating Profit Margin of 5.12% is in the lower quartile for the Insurance - Reinsurance industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AJG | RGA |
|---|---|---|
| Return on Equity (TTM) | 9.41% | 7.36% |
| Return on Assets (TTM) | 2.10% | 0.62% |
| Return on Invested Capital (TTM) | 5.85% | 0.62% |
| Net Profit Margin (TTM) | 12.96% | 3.77% |
| Operating Profit Margin (TTM) | 23.06% | 5.12% |
| Gross Profit Margin (TTM) | 55.08% | 73.13% |
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.
RGA
--
Insurance - Reinsurance Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
Current Ratio data for RGA is currently unavailable.
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.
RGA
0.50
Insurance - Reinsurance Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
RGA has a Debt-to-Equity Ratio of 0.50, but industry benchmarks for the Insurance - Reinsurance sector are currently unavailable for comparison.
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.
RGA
3.41
Insurance - Reinsurance Industry
- Max
- 22.46
- Q3
- 18.27
- Median
- 5.57
- Q1
- 4.93
- Min
- 3.41
In the lower quartile for the Insurance - Reinsurance industry, RGA’s Interest Coverage Ratio of 3.41 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | AJG | RGA |
|---|---|---|
| Current Ratio (TTM) | 1.44 | -- |
| Quick Ratio (TTM) | 1.44 | -- |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.50 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.04 |
| Net Debt-to-EBITDA Ratio (TTM) | -4.68 | 0.54 |
| Interest Coverage Ratio (TTM) | 29.40 | 3.41 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AJG and RGA. 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.
RGA
1.80%
Insurance - Reinsurance Industry
- Max
- 2.38%
- Q3
- 1.52%
- Median
- 0.33%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.80%, RGA offers a more attractive income stream than most of its peers in the Insurance - Reinsurance industry, signaling a strong commitment to shareholder returns.
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.
RGA
29.26%
Insurance - Reinsurance Industry
- Max
- 40.35%
- Q3
- 23.76%
- Median
- 7.09%
- Q1
- 1.73%
- Min
- 0.00%
RGA’s Dividend Payout Ratio of 29.26% is in the upper quartile for the Insurance - Reinsurance 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 | RGA |
|---|---|---|
| Dividend Yield (TTM) | 0.79% | 1.80% |
| Dividend Payout Ratio (TTM) | 35.97% | 29.26% |
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.
RGA
16.46
Insurance - Reinsurance Industry
- Max
- 16.92
- Q3
- 16.06
- Median
- 12.86
- Q1
- 8.23
- Min
- 5.12
A P/E Ratio of 16.46 places RGA in the upper quartile for the Insurance - Reinsurance industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
RGA
1.52
Insurance - Reinsurance Industry
- Max
- 1.52
- Q3
- 1.04
- Median
- 0.71
- Q1
- 0.38
- Min
- 0.20
RGA’s Forward PEG Ratio of 1.52 is exceptionally high for the Insurance - Reinsurance industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
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.
RGA
0.62
Insurance - Reinsurance Industry
- Max
- 1.18
- Q3
- 1.07
- Median
- 0.91
- Q1
- 0.83
- Min
- 0.62
The P/S Ratio is often not a primary valuation tool in the Insurance - Reinsurance industry.
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.
RGA
1.15
Insurance - Reinsurance Industry
- Max
- 1.19
- Q3
- 1.18
- Median
- 1.08
- Q1
- 0.93
- Min
- 0.73
RGA’s P/B Ratio of 1.15 is within the conventional range for the Insurance - Reinsurance industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AJG | RGA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 46.21 | 16.46 |
| Forward PEG Ratio (TTM) | 3.32 | 1.52 |
| Price-to-Sales Ratio (P/S, TTM) | 6.77 | 0.62 |
| Price-to-Book Ratio (P/B, TTM) | 3.23 | 1.15 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 32.26 | 2.58 |
| EV-to-EBITDA (TTM) | 19.36 | 12.68 |
| EV-to-Sales (TTM) | 5.46 | 0.65 |