Arthur J. Gallagher & Co. (NYSE:AJG) & AIX (NASDAQ:AIFU) Financial Analysis

Arthur J. Gallagher & Co. (NYSE:AJG) and AIX (NASDAQ:AIFU) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

85.5% of Arthur J. Gallagher & Co. shares are held by institutional investors. Comparatively, 26.7% of AIX shares are held by institutional investors. 1.6% of Arthur J. Gallagher & Co. shares are held by insiders. Comparatively, 25.6% of AIX shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Arthur J. Gallagher & Co. and AIX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arthur J. Gallagher & Co.	12.70%	16.47%	3.71%
AIX	N/A	N/A	N/A

Earnings & Valuation

This table compares Arthur J. Gallagher & Co. and AIX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arthur J. Gallagher & Co.	$11.55 billion	7.17	$1.46 billion	$6.52	49.90
AIX	$2.36 billion	0.01	$39.50 million	$0.73	0.51

Arthur J. Gallagher & Co. has higher revenue and earnings than AIX. AIX is trading at a lower price-to-earnings ratio than Arthur J. Gallagher & Co., indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Arthur J. Gallagher & Co. has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, AIX has a beta of -0.15, suggesting that its share price is 115% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Arthur J. Gallagher & Co. and AIX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arthur J. Gallagher & Co.	2	6	6	0	2.29
AIX	0	0	0	0	0.00

Arthur J. Gallagher & Co. presently has a consensus price target of $307.93, indicating a potential downside of 5.35%. Given Arthur J. Gallagher & Co.’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Arthur J. Gallagher & Co. is more favorable than AIX.

Summary

Arthur J. Gallagher & Co. beats AIX on 13 of the 14 factors compared between the two stocks.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co. engages in the provision of insurance brokerage, reinsurance brokerage, consulting, and third-party claims settlement and administration services. It operates through the following business segments: Brokerage, Risk Management, and Corporate. The Brokerage segment consists of retail and wholesale insurance brokerage operations. The Risk Management segment provides contract claim settlement and administration services. The Corporate segment manages clean energy and other investments. The company was founded by Arthur J. Gallagher in 1927 and is headquartered in Rolling Meadows, IL.

About AIX

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.