Arthur J. Gallagher vs Brown & Brown
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KIRA’s take AI analyst
I put Arthur J. Gallagher and Brown & Brown 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 $5.9B for Brown & Brown, about 2.4 times as much.
- Brown & Brown grew revenue faster (22.8%, against 20.7%).
- Brown & Brown turned more of its sales into free cash flow (23.4% FCF margin, against 12.8%).
- Arthur J. Gallagher earned a higher return on the capital invested in it (9.9%, against 9.1%).
- Investors pay more for each dollar of Arthur J. Gallagher’s earnings: a P/E of 44.2x against 22.4x for Brown & Brown.
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
Return on capitalNet debt / EBITDA
Brown & Brown
BRO
7/9
Revenue growth5-year growthNet marginFCF marginReturn on equityPiotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | AJG FY25 | BRO FY25 |
|---|---|---|
| Size | ||
| Market cap | $68.5B | $23.7B |
| Revenue | $13.9B | $5.9B |
| Free cash flow | $1.8B | $1.4B |
| Net income | $1.5B | $1.1B |
| Growth | ||
| Revenue growth | 20.7% | 22.8% |
| 5-year growth | 14.8% | 17.7% |
| Share count change | 16.2% | 10.2% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | 10.7% | 17.9% |
| FCF margin | 12.8% | 23.4% |
| Return on capital | 9.9% | 9.1% |
| Return on equity | 6.9% | 11.1% |
| Balance sheet | ||
| Net debt | $12.1B | $6.5B |
| Net debt / EBITDA | 3.3x | 3.8x |
| Dividends and buybacks | $667M | $293M |
| Valuation & quality | ||
| P/E | 44.2x | 22.4x |
| 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.