AJG vs AON Stock Comparison: AI Score, Valuation, Performance and Upside
Arthur J. Gallagher and Aon are both major global insurance brokerage firms, but Arthur J. Gallagher has built its growth strategy around a long track record of acquisitions serving mid-market and small business clients, while Aon focuses on serving large corporate and institutional clients with insurance brokerage and human capital consulting services.
AJG offers exposure to a consolidation-driven growth strategy within the fragmented mid-market insurance brokerage segment, while AON offers exposure to a scaled, diversified advisory platform serving large global corporate clients. The decision depends on whether you prefer acquisition-driven mid-market consolidation or organic growth within large corporate accounts.
AON holds the edge across 3 of 5 key metrics in this comparison. AJG has delivered stronger 1-year price return (+12.54% vs -2.85%), though AON has the better forward P/E setup (14.90x vs 16.14x for AJG). On fundamentals, AJG is growing revenue faster (30.90%), while AON maintains the higher operating margin (23.46%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for AON (+26.42%) than for AJG (+21.39%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want exposure to a consolidation-driven growth strategy within mid-market insurance brokerage
- Value a long track record of successful acquisition sourcing and integration
- Believe the fragmented mid-market and small business segment offers ongoing consolidation opportunities
- Prefer a mid-market-focused insurance broker over one concentrated on large corporate clients
- Want exposure to a scaled, diversified advisory platform serving large corporate clients
- Value diversification across insurance brokerage, reinsurance brokerage, and human capital consulting
- Believe long-established large corporate relationships support high client retention
- Prefer a large-corporate-focused insurance broker over one concentrated on mid-market consolidation
| Metric | AJG | AON |
|---|---|---|
| AI scorei | 63.7 | 51.6 |
| AI ranki | #107 | #457 |
| Latest closei | $273.45 | $330.16 |
| 1M returni | +20.94% | +22.53% |
| 3M returni | +10.24% | -7.43% |
| 6M returni | +32.87% | +4.96% |
| 1Y returni | +12.54% | -2.85% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | AJG | AON |
|---|---|---|
| 1Y ago | $10.86K (+8.6%) started 2025-11-04 | $9.59K (-4.1%) started 2025-11-04 |
| 5Y ago | $18.28K (+82.8%) started 2021-11-04 | $11.94K (+19.4%) started 2021-11-04 |
| 10Y ago | $76.94K (+669.4%) started 2016-11-04 | $35.66K (+256.6%) started 2016-11-04 |
Hypothetical — past performance does not guarantee future results.
| Metric | AJG | AON |
|---|---|---|
| Market capi | $61.6B | $64.21B |
| Trailing P/Ei | 39.85 | 16.70 |
| Forward P/Ei | 16.14 | 14.90 |
| Price/Salesi | 7.49 | 4.90 |
| EV/Revenuei | 4.92 | 4.50 |
| Analyst targeti | $291.72 | $382.67 |
| Target upsidei | +21.39% | +26.42% |
| Metric | AJG | AON |
|---|---|---|
| Revenue growthi | 30.90% | 2.20% |
| Earnings growthi | -10.70% | -3.00% |
| EPS growthi | -10.70% | -3.00% |
| FCF margini | +13.78% | +18.15% |
| Operating margini | 19.16% | 23.46% |
| Profit margini | 10.38% | 22.27% |
| ROIC proxyi | 6.72% | 44.70% |
| Return on equityi | 6.72% | 44.70% |
| Dividend yieldi | 1.17% | 1.08% |
| Payout ratioi | 44.78% | 17.13% |
| Dividend growth streaki | No increase yet | 5 yrs |
| Betai | 0.51 | 0.66 |
| Debt/equityi | 59.40 | 163.48 |
| Current ratioi | 1.05 | 1.03 |
| Quick ratioi | 0.17 | 0.24 |
Over the past year, AJG and AON have moved strongly in the same direction (correlation of 0.79), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | AJG | AON |
|---|---|---|---|
| 1Y | Growthi | +8.64% | -4.08% |
| CAGRi | +8.66% | -4.09% | |
| Volatilityi | 31.64% | 28.70% | |
| Sharpe ratioi | 0.28 | -0.16 | |
| Sortino ratioi | 0.41 | -0.21 | |
| Max drawdowni | 27.50% | 29.33% | |
| Current drawdowni | 0.00% | 13.40% | |
| Avg drawdowni | 11.01% | 8.90% | |
| Ulcer Indexi | 13.54% | 11.72% | |
| Max daily dropi | 9.85% | 9.53% | |
| Max wkly dropi | 17.73% | 11.49% | |
| 5Y | Growthi | +76.28% | +16.54% |
| CAGRi | +12.01% | +3.11% | |
| Volatilityi | 24.36% | 23.87% | |
| Sharpe ratioi | 0.41 | 0.06 | |
| Sortino ratioi | 0.56 | 0.08 | |
| Max drawdowni | 44.95% | 34.17% | |
| Current drawdowni | 21.60% | 19.34% | |
| Avg drawdowni | 10.55% | 10.42% | |
| Ulcer Indexi | 15.96% | 12.70% | |
| Max daily dropi | 9.85% | 9.53% | |
| Max wkly dropi | 17.73% | 12.29% | |
| 10Y | Growthi | +562.40% | +230.02% |
| CAGRi | +20.82% | +12.68% | |
| Volatilityi | 23.84% | 24.08% | |
| Sharpe ratioi | 0.73 | 0.43 | |
| Sortino ratioi | 1.02 | 0.61 | |
| Max drawdowni | 44.95% | 38.73% | |
| Current drawdowni | 21.60% | 19.34% | |
| Avg drawdowni | 7.18% | 8.27% | |
| Ulcer Indexi | 12.18% | 11.07% | |
| Max daily dropi | 15.24% | 16.70% | |
| Max wkly dropi | 23.73% | 19.97% |
| Category | AJG | AON |
|---|---|---|
| Company | Arthur J. Gallagher & Co. | Aon plc |
| Sector | Financial Services | Financial Services |
| Industry | Insurance Brokers | Insurance Brokers |
| Core business | A global insurance brokerage and risk management services company providing property and casualty insurance brokerage, employee benefits consulting, and claims management services primarily to mid-market and small business clients. | A global professional services firm providing insurance brokerage, reinsurance brokerage, and human capital consulting services to large corporate and institutional clients worldwide. |
| Investor focus | Organic revenue growth trends across its brokerage and risk management segments, acquisition activity and integration track record, and operating margin expansion over time. | Organic revenue growth across its risk capital and human capital segments, progress on strategic content and technology initiatives, and operating margin trends. |
- Long track record of successful acquisitions has supported consistent growth in scale and geographic and product diversification
- Focus on mid-market and small business clients provides a large, fragmented addressable market with ongoing consolidation opportunities
- Diversification across insurance brokerage, employee benefits consulting, and risk management services creates multiple revenue streams
- Scale and global reach position the company well to serve large multinational corporations with complex risk and human capital needs
- Diversification across insurance brokerage, reinsurance brokerage, and human capital consulting creates multiple revenue streams
- Long-established relationships with large corporate clients support high retention rates for its advisory and brokerage services
- Continued growth strategy relies heavily on successful sourcing, execution, and integration of acquisitions over time
- Faces competition from both larger global insurance brokers and smaller regional and specialty brokerage firms
- Insurance brokerage commission revenue can be affected by broader property and casualty insurance pricing cycles
- Focus on large corporate clients means growth is more dependent on organic expansion within existing accounts than smaller-client consolidation
- Faces competition from both other large global insurance brokers and specialized advisory and consulting firms
- Insurance brokerage commission revenue can be affected by broader property and casualty insurance pricing cycles
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