Arthur J. Gallagher vs Willis Towers Watson
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KIRA’s take AI analyst
I put Arthur J. Gallagher and Willis Towers Watson side by side, using each one’s latest annual report. Here is what stands out:
- Arthur J. Gallagher is the larger business, with $13.9B of revenue in fiscal 2025 against $9.7B for Willis Towers Watson.
- Arthur J. Gallagher grew revenue faster (20.7%, against −2.2%).
- Willis Towers Watson turned more of its sales into free cash flow (15.9% FCF margin, against 12.8%).
- Willis Towers Watson earned a higher return on the capital invested in it (12.8%, against 9.9%).
- Investors pay more for each dollar of Arthur J. Gallagher’s earnings: a P/E of 44.5x against 20.1x for Willis Towers Watson.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Arthur J. Gallagher
AJG
2/9
Revenue growth5-year growth
Willis Towers Watson
WTW
7/9
Net marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | AJG FY25 | WTW FY25 |
|---|---|---|
| Size | ||
| Market cap | $68.8B | $30.6B |
| Revenue | $13.9B | $9.7B |
| Free cash flow | $1.8B | $1.5B |
| Net income | $1.5B | $1.6B |
| Growth | ||
| Revenue growth | 20.7% | −2.2% |
| 5-year growth | 14.8% | 2.4% |
| Share count change | 16.2% | −2.9% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | — | 23.0% |
| Net margin | 10.7% | 16.5% |
| FCF margin | 12.8% | 15.9% |
| Return on capital | 9.9% | 12.8% |
| Return on equity | 6.9% | 20.2% |
| Balance sheet | ||
| Net debt | $12.1B | $6.5B |
| Net debt / EBITDA | 3.3x | 2.5x |
| Dividends and buybacks | $667M | $2.0B |
| Valuation & quality | ||
| P/E | 44.5x | 20.1x |
| Piotroski F-score | 3 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.