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AJG vs V

AJG
Arthur J. Gallagher & Co.
BEARISH
Price
$253.21
Market Cap
$65.03B
Sector
Financial Services
AI Confidence
78%
V
Visa Inc.
BULLISH
Price
$302.24
Market Cap
$582.73B
Sector
Financial Services
AI Confidence
75%

Valuation

P/E Ratio
AJG
40.0
V
28.35
Forward P/E
AJG
19.06
V
20.79
P/B Ratio
AJG
2.8
V
15.09
P/S Ratio
AJG
5.38
V
14.08
EV/EBITDA
AJG
22.48
V
20.06

Profitability

Gross Margin
AJG
43.6%
V
97.78%
Operating Margin
AJG
17.21%
V
68.3%
Profit Margin
AJG
13.26%
V
50.23%
ROE
AJG
9.07%
V
53.95%
ROA
AJG
2.3%
V
18.36%

Growth

Revenue Growth
AJG
20.0%
V
14.6%
Earnings Growth
AJG
-25.2%
V
17.4%

Financial Health

Debt/Equity
AJG
0.59
V
0.55
Current Ratio
AJG
1.05
V
1.11
Quick Ratio
AJG
0.17
V
0.72

Dividends

Dividend Yield
AJG
1.04%
V
0.89%
Payout Ratio
AJG
40.73%
V
22.91%

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
V BULLISH

V shows bullish fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Key strengths include strong valuation and growth metrics.

Strengths
Strong profitability (50.2% margin)
Strong ROE of 54.0%
Risks
Premium vs Graham Number ($69.32)

Compare Another Pair

AJG vs V: Head-to-Head Comparison

This page compares Arthur J. Gallagher & Co. (AJG) and Visa Inc. (V) 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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