AJG vs. SMFG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AJG and SMFG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AJG’s market capitalization stands at 81.47 billion USD, while SMFG’s is 98.59 billion USD, indicating their market valuations are broadly comparable.
AJG’s beta of 0.75 points to significantly higher volatility compared to SMFG (beta: 0.22), suggesting AJG has greater potential for both gains and losses relative to market movements.
SMFG is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AJG, on the other hand, is a domestic entity.
| Symbol | AJG | SMFG |
|---|---|---|
| Company Name | Arthur J. Gallagher & Co. | Sumitomo Mitsui Financial Group, Inc. |
| Country | US | JP |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Banks - Diversified |
| CEO | J. Patrick Gallagher Jr. | Toru Nakashima |
| Price | 318.1 USD | 15.28 USD |
| Market Cap | 81.47 billion USD | 98.59 billion USD |
| Beta | 0.75 | 0.22 |
| Exchange | NYSE | NYSE |
| IPO Date | June 20, 1984 | January 27, 2006 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AJG and SMFG 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.
SMFG
7.91%
Banks - Diversified Industry
- Max
- 20.93%
- Q3
- 14.73%
- Median
- 12.33%
- Q1
- 9.14%
- Min
- 5.86%
SMFG’s Return on Equity of 7.91% is in the lower quartile for the Banks - Diversified 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.
SMFG
1.13%
Banks - Diversified Industry
- Max
- 4.52%
- Q3
- 2.95%
- Median
- 1.89%
- Q1
- 0.86%
- Min
- 0.18%
Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified 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.
SMFG
19.24%
Banks - Diversified Industry
- Max
- 33.40%
- Q3
- 26.40%
- Median
- 19.24%
- Q1
- 14.99%
- Min
- 7.95%
SMFG’s Net Profit Margin of 19.24% is aligned with the median group of its peers in the Banks - Diversified industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
SMFG
28.44%
Banks - Diversified Industry
- Max
- 50.90%
- Q3
- 37.76%
- Median
- 28.44%
- Q1
- 15.73%
- Min
- 8.60%
SMFG’s Operating Profit Margin of 28.44% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AJG | SMFG |
|---|---|---|
| Return on Equity (TTM) | 9.41% | 7.91% |
| Return on Assets (TTM) | 2.10% | 0.38% |
| Return on Invested Capital (TTM) | 5.85% | 1.13% |
| Net Profit Margin (TTM) | 12.96% | 19.24% |
| Operating Profit Margin (TTM) | 23.06% | 28.44% |
| Gross Profit Margin (TTM) | 55.08% | 79.72% |
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.
SMFG
0.45
Banks - Diversified Industry
- Max
- 0.67
- Q3
- 0.49
- Median
- 0.39
- Q1
- 0.28
- Min
- 0.06
For the Banks - Diversified 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.
SMFG
3.96
Banks - Diversified Industry
- Max
- 4.98
- Q3
- 3.65
- Median
- 3.13
- Q1
- 1.73
- Min
- 0.09
SMFG’s leverage is in the upper quartile of the Banks - Diversified industry, with a Debt-to-Equity Ratio of 3.96. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
SMFG
0.38
Banks - Diversified Industry
- Max
- 0.98
- Q3
- 0.78
- Median
- 0.55
- Q1
- 0.31
- Min
- 0.09
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Diversified industry.
Financial Strength at a Glance
| Symbol | AJG | SMFG |
|---|---|---|
| Current Ratio (TTM) | 1.44 | 0.45 |
| Quick Ratio (TTM) | 1.44 | 0.45 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 3.96 |
| Debt-to-Asset Ratio (TTM) | 0.01 | 0.19 |
| Net Debt-to-EBITDA Ratio (TTM) | -4.68 | -10.34 |
| Interest Coverage Ratio (TTM) | 29.40 | 0.38 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AJG and SMFG. 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.
SMFG
3.30%
Banks - Diversified Industry
- Max
- 7.73%
- Q3
- 4.16%
- Median
- 3.24%
- Q1
- 2.27%
- Min
- 0.00%
SMFG’s Dividend Yield of 3.30% is consistent with its peers in the Banks - Diversified 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.
SMFG
0.00%
Banks - Diversified Industry
- Max
- 84.94%
- Q3
- 39.11%
- Median
- 26.91%
- Q1
- 0.00%
- Min
- 0.00%
SMFG 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 | SMFG |
|---|---|---|
| Dividend Yield (TTM) | 0.79% | 3.30% |
| 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.
SMFG
12.14
Banks - Diversified Industry
- Max
- 14.13
- Q3
- 13.37
- Median
- 11.90
- Q1
- 9.29
- Min
- 7.43
SMFG’s P/E Ratio of 12.14 is within the middle range for the Banks - Diversified 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.
SMFG
2.00
Banks - Diversified Industry
- Max
- 1.98
- Q3
- 1.41
- Median
- 1.15
- Q1
- 0.77
- Min
- 0.45
SMFG’s Forward PEG Ratio of 2.00 is exceptionally high for the Banks - Diversified 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.
SMFG
2.34
Banks - Diversified Industry
- Max
- 4.15
- Q3
- 2.92
- Median
- 2.29
- Q1
- 1.83
- Min
- 0.94
The P/S Ratio is often not a primary valuation tool in the Banks - Diversified 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.
SMFG
0.97
Banks - Diversified Industry
- Max
- 1.89
- Q3
- 1.47
- Median
- 1.23
- Q1
- 1.10
- Min
- 0.65
SMFG’s P/B Ratio of 0.97 is in the lower quartile for the Banks - Diversified 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.
Valuation at a Glance
| Symbol | AJG | SMFG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 46.21 | 12.14 |
| Forward PEG Ratio (TTM) | 3.32 | 2.00 |
| Price-to-Sales Ratio (P/S, TTM) | 6.77 | 2.34 |
| Price-to-Book Ratio (P/B, TTM) | 3.23 | 0.97 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 32.26 | -- |
| EV-to-EBITDA (TTM) | 19.36 | -1.79 |
| EV-to-Sales (TTM) | 5.46 | -0.49 |