Arthur J Gallagher & Co (NYSE:AJG) and Allianz (OTCMKTS:ALIZY) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.
This table compares Arthur J Gallagher & Co and Allianz’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Arthur J Gallagher & Co||10.35%||16.01%||4.10%|
Arthur J Gallagher & Co pays an annual dividend of $1.80 per share and has a dividend yield of 1.7%. Allianz pays an annual dividend of $0.72 per share and has a dividend yield of 3.4%. Arthur J Gallagher & Co pays out 49.3% of its earnings in the form of a dividend. Arthur J Gallagher & Co has increased its dividend for 1 consecutive years.
Valuation & Earnings
This table compares Arthur J Gallagher & Co and Allianz’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arthur J Gallagher & Co||$7.20 billion||2.74||$668.80 million||$3.65||28.23|
|Allianz||$159.47 billion||0.56||$8.86 billion||N/A||N/A|
Allianz has higher revenue and earnings than Arthur J Gallagher & Co.
Volatility & Risk
Arthur J Gallagher & Co has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Allianz has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
Insider & Institutional Ownership
81.5% of Arthur J Gallagher & Co shares are owned by institutional investors. Comparatively, 0.2% of Allianz shares are owned by institutional investors. 1.4% of Arthur J Gallagher & Co shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings and recommmendations for Arthur J Gallagher & Co and Allianz, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Arthur J Gallagher & Co||2||2||7||1||2.58|
Arthur J Gallagher & Co presently has a consensus target price of $110.17, suggesting a potential upside of 6.92%. Given Arthur J Gallagher & Co’s stronger consensus rating and higher probable upside, equities analysts plainly believe Arthur J Gallagher & Co is more favorable than Allianz.
Arthur J Gallagher & Co beats Allianz on 12 of the 17 factors compared between the two stocks.
Arthur J Gallagher & Co Company Profile
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, and third party claims settlement and administration services to entities in the United States and internationally. Its Brokerage segment consists of retail and wholesale insurance brokerage operations. It offers brokerage and consulting services to businesses and organizations, including commercial, not-for-profit, and public entities, as well as individuals in the areas of insurance placement, risk of loss management, and management of employer sponsored benefit programs. This segment also assist retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; acts as a brokerage wholesaler, and managing general agent or managing general underwriter distributing specialized insurance coverage's for underwriting enterprises; and performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance. The company's Risk Management segment provides contract claim settlement and administration services for enterprises and public entities; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent insurance brokers and consultants. Arthur J. Gallagher & Co. was founded in 1927 and is headquartered in Rolling Meadows, Illinois.
Allianz Company Profile
Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide. The company's Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel insurance products to private and corporate customers. Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private health, supplemental health, and long-term care insurance products. The company's Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, as well as alternative products; and investment management services. Its Corporate and Other segment provides various banking products for corporate and retail clients; and alternative investment management services in the private equity, real estate, renewable energy, and infrastructure sectors. Allianz SE was founded in 1890 and is headquartered in Munich, Germany.
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