AJG vs. RKT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AJG and RKT, 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 RKT’s 28.48 billion USD, indicating a significant difference in their market valuations.
RKT carries a higher beta at 2.28, indicating it’s more sensitive to market moves, while AJG (beta: 0.75) exhibits greater stability.
| Symbol | AJG | RKT |
|---|---|---|
| Company Name | Arthur J. Gallagher & Co. | Rocket Companies, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Financial - Mortgages |
| CEO | J. Patrick Gallagher Jr. | Varun Krishna |
| Price | 318.1 USD | 14.24 USD |
| Market Cap | 81.47 billion USD | 28.48 billion USD |
| Beta | 0.75 | 2.28 |
| Exchange | NYSE | NYSE |
| IPO Date | June 20, 1984 | August 6, 2020 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AJG and RKT 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.
RKT
0.43%
Financial - Mortgages Industry
- Max
- 13.67%
- Q3
- 8.34%
- Median
- 5.17%
- Q1
- 1.25%
- Min
- 0.43%
RKT’s Return on Equity of 0.43% is in the lower quartile for the Financial - Mortgages industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
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.
RKT
0.53%
Financial - Mortgages Industry
- Max
- 5.70%
- Q3
- 5.19%
- Median
- 3.06%
- Q1
- 1.74%
- Min
- 0.53%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Mortgages 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.
RKT
0.05%
Financial - Mortgages Industry
- Max
- 23.74%
- Q3
- 12.13%
- Median
- 3.31%
- Q1
- 0.50%
- Min
- -8.40%
Falling into the lower quartile for the Financial - Mortgages industry, RKT’s Net Profit Margin of 0.05% 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.
RKT
2.89%
Financial - Mortgages Industry
- Max
- 52.12%
- Q3
- 29.77%
- Median
- 12.64%
- Q1
- 9.22%
- Min
- 2.89%
In the Financial - Mortgages industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | AJG | RKT |
|---|---|---|
| Return on Equity (TTM) | 9.41% | 0.43% |
| Return on Assets (TTM) | 2.10% | 0.01% |
| Return on Invested Capital (TTM) | 5.85% | 0.53% |
| Net Profit Margin (TTM) | 12.96% | 0.05% |
| Operating Profit Margin (TTM) | 23.06% | 2.89% |
| Gross Profit Margin (TTM) | 55.08% | 90.49% |
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.
RKT
0.43
Financial - Mortgages Industry
- Max
- 1.56
- Q3
- 1.28
- Median
- 0.56
- Q1
- 0.42
- Min
- 0.18
For the Financial - Mortgages industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
RKT
25.35
Financial - Mortgages Industry
- Max
- 28.70
- Q3
- 26.19
- Median
- 12.98
- Q1
- 1.97
- Min
- 0.28
RKT’s Debt-to-Equity Ratio of 25.35 is typical for the Financial - Mortgages industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
RKT
0.30
Financial - Mortgages Industry
- Max
- 1.52
- Q3
- 1.23
- Median
- 0.75
- Q1
- 0.30
- Min
- 0.30
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Mortgages industry.
Financial Strength at a Glance
| Symbol | AJG | RKT |
|---|---|---|
| Current Ratio (TTM) | 1.44 | 0.43 |
| Quick Ratio (TTM) | 1.44 | 0.43 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 25.35 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.59 |
| Net Debt-to-EBITDA Ratio (TTM) | -4.68 | 51.64 |
| Interest Coverage Ratio (TTM) | 29.40 | 0.30 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AJG and RKT. 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.
RKT
5.62%
Financial - Mortgages Industry
- Max
- 9.76%
- Q3
- 3.44%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 5.62%, RKT offers a more attractive income stream than most of its peers in the Financial - Mortgages 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.
RKT
0.00%
Financial - Mortgages Industry
- Max
- 809.09%
- Q3
- 90.46%
- Median
- 3.86%
- Q1
- 0.00%
- Min
- 0.00%
RKT has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | AJG | RKT |
|---|---|---|
| Dividend Yield (TTM) | 0.79% | 5.62% |
| Dividend Payout Ratio (TTM) | 35.97% | 0.00% |
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.
RKT
758.84
Financial - Mortgages Industry
- Max
- 27.35
- Q3
- 24.60
- Median
- 19.38
- Q1
- 13.85
- Min
- 9.11
At 758.84, RKT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial - Mortgages industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
RKT
16.55
Financial - Mortgages Industry
- Max
- 3.27
- Q3
- 1.67
- Median
- 0.90
- Q1
- 0.60
- Min
- 0.34
RKT’s Forward PEG Ratio of 16.55 is exceptionally high for the Financial - Mortgages 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.
RKT
5.62
Financial - Mortgages Industry
- Max
- 5.61
- Q3
- 3.48
- Median
- 1.83
- Q1
- 0.79
- Min
- 0.28
The P/S Ratio is often not a primary valuation tool in the Financial - Mortgages 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.
RKT
3.60
Financial - Mortgages Industry
- Max
- 1.94
- Q3
- 1.80
- Median
- 1.23
- Q1
- 1.05
- Min
- 0.58
At 3.60, RKT’s P/B Ratio is at an extreme premium to the Financial - Mortgages 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.
Valuation at a Glance
| Symbol | AJG | RKT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 46.21 | 758.84 |
| Forward PEG Ratio (TTM) | 3.32 | 16.55 |
| Price-to-Sales Ratio (P/S, TTM) | 6.77 | 5.62 |
| Price-to-Book Ratio (P/B, TTM) | 3.23 | 3.60 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 32.26 | -22.66 |
| EV-to-EBITDA (TTM) | 19.36 | 161.45 |
| EV-to-Sales (TTM) | 5.46 | 8.26 |