Arthur J. Gallagher vs Marsh McLennan
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The short version
- Marsh McLennan is the larger business, with $27.0B of revenue in fiscal 2025 against $13.9B for Arthur J. Gallagher, about 1.9 times as much.
- Arthur J. Gallagher grew revenue faster (20.7%, against 10.3%).
- Marsh McLennan turned more of its sales into free cash flow (18.5% FCF margin, against 12.8%).
- Marsh McLennan earned a higher return on the capital invested in it (15.0%, against 9.9%).
- Investors pay more for each dollar of Arthur J. Gallagher’s earnings: a P/E of 44.5x against 23.6x for Marsh McLennan.
| Latest fiscal year | AJG · FY25 | MRSH · FY25 |
|---|---|---|
| Size | ||
| Market cap | $68.8B | $94.6B |
| Revenue | $13.9B | $27.0B |
| Free cash flow | $1.8B | $5.0B |
| Net income | $1.5B | $4.2B |
| Growth | ||
| Revenue growth | 20.7% | 10.3% |
| 5-year growth | 14.8% | 9.4% |
| Share count change | 16.2% | −0.4% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | — | 23.1% |
| Net margin | 10.7% | 15.4% |
| FCF margin | 12.8% | 18.5% |
| Return on capital | 9.9% | 15.0% |
| Return on equity | 6.9% | 28.8% |
| Balance sheet | ||
| Net debt | $12.1B | $16.9B |
| Net debt / EBITDA | 3.3x | 2.6x |
| Dividends and buybacks | $667M | $3.7B |
| Valuation & quality | ||
| P/E | 44.5x | 23.6x |
| Piotroski F-score | 3 | 5 |
Revenue
FY16
AJG $5.6B
MRSH $13.2B
FY17
AJG $6.2B
MRSH $14.0B
FY18
AJG $6.9B
MRSH $15.0B
FY19
AJG $7.2B
MRSH $16.7B
FY20
AJG $7.0B
MRSH $17.2B
FY21
AJG $8.2B
MRSH $19.8B
FY22
AJG $8.6B
MRSH $20.7B
FY23
AJG $10.1B
MRSH $22.7B
FY24
AJG $11.6B
MRSH $24.5B
FY25
AJG $13.9B
MRSH $27.0B
AJG
MRSH
Operating margin
FY16
AJG —
MRSH 18.4%
FY17
AJG —
MRSH 18.9%
FY18
AJG —
MRSH 18.5%
FY19
AJG —
MRSH 16.1%
FY20
AJG —
MRSH 17.8%
FY21
AJG —
MRSH 21.8%
FY22
AJG —
MRSH 20.7%
FY23
AJG —
MRSH 23.2%
FY24
AJG —
MRSH 23.8%
FY25
AJG —
MRSH 23.1%
AJG
MRSH
Free cash flow
FY16
AJG $432M
MRSH $1.8B
FY17
AJG $725M
MRSH $1.6B
FY18
AJG $641M
MRSH $2.1B
FY19
AJG $1.1B
MRSH $1.9B
FY20
AJG $1.7B
MRSH $3.0B
FY21
AJG $1.3B
MRSH $3.1B
FY22
AJG $1.2B
MRSH $3.0B
FY23
AJG $1.8B
MRSH $3.8B
FY24
AJG $2.4B
MRSH $4.0B
FY25
AJG $1.8B
MRSH $5.0B
AJG
MRSH
Return on capital
FY16
AJG 12.1%
MRSH 17.9%
FY17
AJG 12.5%
MRSH 13.9%
FY18
AJG 14.9%
MRSH 16.9%
FY19
AJG 16.8%
MRSH 11.9%
FY20
AJG 19.3%
MRSH 11.5%
FY21
AJG 16.7%
MRSH 16.5%
FY22
AJG 15.5%
MRSH 15.6%
FY23
AJG 12.5%
MRSH 18.4%
FY24
AJG 22.2%
MRSH 16.3%
FY25
AJG 9.9%
MRSH 15.0%
AJG
MRSH
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.