Arthur J. Gallagher vs Aon
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KIRA’s take AI analyst
I put Arthur J. Gallagher and Aon side by side, using each one’s latest annual report. Here is what stands out:
- Aon is the larger business, with $17.2B of revenue in fiscal 2025 against $13.9B for Arthur J. Gallagher.
- Arthur J. Gallagher grew revenue faster (20.7%, against 9.5%).
- Aon turned more of its sales into free cash flow (18.7% FCF margin, against 12.8%).
- Aon earned a higher return on the capital invested in it (15.6%, against 9.9%).
- Investors pay more for each dollar of Arthur J. Gallagher’s earnings: a P/E of 44.5x against 16.7x for Aon.
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
Aon
AON
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 | AON FY25 |
|---|---|---|
| Size | ||
| Market cap | $68.8B | $64.9B |
| Revenue | $13.9B | $17.2B |
| Free cash flow | $1.8B | $3.2B |
| Net income | $1.5B | $3.7B |
| Growth | ||
| Revenue growth | 20.7% | 9.5% |
| 5-year growth | 14.8% | 9.2% |
| Share count change | 16.2% | 2.2% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | — | 25.3% |
| Net margin | 10.7% | 21.5% |
| FCF margin | 12.8% | 18.7% |
| Return on capital | 9.9% | 15.6% |
| Return on equity | 6.9% | 47.8% |
| Balance sheet | ||
| Net debt | $12.1B | $12.5B |
| Net debt / EBITDA | 3.3x | 2.8x |
| Dividends and buybacks | $667M | $1.6B |
| Valuation & quality | ||
| P/E | 44.5x | 16.7x |
| Piotroski F-score | 3 | 4 |
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.