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AJG vs MA

AJG
Arthur J. Gallagher & Co.
BEARISH
Price
$253.21
Market Cap
$65.03B
Sector
Financial Services
AI Confidence
78%
MA
Mastercard Incorporated
NEUTRAL
Price
$499.66
Market Cap
$445.92B
Sector
Financial Services
AI Confidence
80%

Valuation

P/E Ratio
AJG
40.0
MA
30.28
Forward P/E
AJG
19.06
MA
22.05
P/B Ratio
AJG
2.8
MA
57.74
P/S Ratio
AJG
5.38
MA
13.6
EV/EBITDA
AJG
22.48
MA
22.13

Profitability

Gross Margin
AJG
43.6%
MA
100.0%
Operating Margin
AJG
17.21%
MA
57.73%
Profit Margin
AJG
13.26%
MA
45.65%
ROE
AJG
9.07%
MA
209.91%
ROA
AJG
2.3%
MA
23.72%

Growth

Revenue Growth
AJG
20.0%
MA
17.6%
Earnings Growth
AJG
-25.2%
MA
24.2%

Financial Health

Debt/Equity
AJG
0.59
MA
2.56
Current Ratio
AJG
1.05
MA
1.03
Quick Ratio
AJG
0.17
MA
0.68

Dividends

Dividend Yield
AJG
1.04%
MA
0.7%
Payout Ratio
AJG
40.73%
MA
18.4%

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
MA NEUTRAL

MA shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (45.6% margin)
Strong revenue growth of 17.6%
Strong ROE of 209.9%
Risks
High valuation with P/E of 30.3
Premium vs Graham Number ($56.68)
High debt burden with D/E of 2.56

Compare Another Pair

AJG vs MA: Head-to-Head Comparison

This page compares Arthur J. Gallagher & Co. (AJG) and Mastercard Incorporated (MA) 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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