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AJG vs BRK-A

AJG
Arthur J. Gallagher & Co.
BEARISH
Price
$253.21
Market Cap
$65.03B
Sector
Financial Services
AI Confidence
78%
BRK-A
Berkshire Hathaway Inc.
BEARISH
Price
$718921.00
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
65%

Valuation

P/E Ratio
AJG
40.0
BRK-A
15.45
Forward P/E
AJG
19.06
BRK-A
22.3
P/B Ratio
AJG
2.8
BRK-A
1.44
P/S Ratio
AJG
5.38
BRK-A
2.78
EV/EBITDA
AJG
22.48
BRK-A
7.21

Profitability

Gross Margin
AJG
43.6%
BRK-A
26.15%
Operating Margin
AJG
17.21%
BRK-A
32.96%
Profit Margin
AJG
13.26%
BRK-A
18.03%
ROE
AJG
9.07%
BRK-A
9.81%
ROA
AJG
2.3%
BRK-A
5.11%

Growth

Revenue Growth
AJG
20.0%
BRK-A
-0.7%
Earnings Growth
AJG
-25.2%
BRK-A
-2.5%

Financial Health

Debt/Equity
AJG
0.59
BRK-A
0.19
Current Ratio
AJG
1.05
BRK-A
7.07
Quick Ratio
AJG
0.17
BRK-A
6.62

Dividends

Dividend Yield
AJG
1.04%
BRK-A
--
Payout Ratio
AJG
40.73%
BRK-A
0.0%

AI Verdict

AJG BEARISH

AJG's deterministic health score is weak, with a Piotroski F-Score of 4/9 indicating marginal financial stability and no available Altman Z-Score to confirm safety from distress. Despite strong revenue growth of 20% YoY, earnings are sharply declining (-25.2% YoY, -54% EPS), and the stock trades at a steep valuation (P/E 40.0, Forward P/E 19.06) well above sector averages. Insider selling is aggressive ($17.16M in net sales), and recent earnings misses have become frequent, with 3 out of the last 4 quarters missing estimates. While the balance sheet shows moderate leverage (Debt/Equity 0.59), weak profitability trends, deteriorating earnings momentum, and bearish technicals point to significant near-term risks.

Strengths
Strong year-over-year revenue growth of 20.0%, outpacing many peers in the Financial Services sector
Moderate debt levels with a Debt/Equity ratio of 0.59, below the sector average of 2.02
High gross margin of 43.60%, reflecting pricing power and efficient cost structure in core brokerage operations
Risks
Earnings under severe pressure: YoY earnings growth at -25.2% and Q/Q EPS down -55.4%, indicating rapid deterioration
Very low Piotroski F-Score of 4/9, signaling weak financial health—particularly concerning given declining profitability and cash flow metrics
Rich valuation: P/E of 40.0 is more than double the sector average (21.69) and far exceeds Forward P/E of 19.06, demanding perfect execution
BRK-A BEARISH

BRK-A shows bearish fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Concerns include weak profitability or high valuation.

Strengths
Low debt with D/E ratio of 0.19
Risks
Weak financial trend (Piotroski F-Score: 3/9)
Declining revenue (-0.7%)

Compare Another Pair

AJG vs BRK-A: Head-to-Head Comparison

This page compares Arthur J. Gallagher & Co. (AJG) and Berkshire Hathaway Inc. (BRK-A) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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