Reviewing Arthur J. Gallagher & Co. (NYSE:AJG) & The Baldwin Insurance Group (NASDAQ:BWIN)

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

Analyst Recommendations

This is a summary of recent recommendations for The Baldwin Insurance Group and Arthur J. Gallagher & Co., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Baldwin Insurance Group	1	1	4	1	2.71
Arthur J. Gallagher & Co.	2	6	6	0	2.29

The Baldwin Insurance Group presently has a consensus price target of $43.50, indicating a potential upside of 5.74%. Arthur J. Gallagher & Co. has a consensus price target of $307.00, indicating a potential downside of 9.07%. Given The Baldwin Insurance Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe The Baldwin Insurance Group is more favorable than Arthur J. Gallagher & Co..

Earnings and Valuation

This table compares The Baldwin Insurance Group and Arthur J. Gallagher & Co.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Baldwin Insurance Group	$1.33 billion	3.63	-$90.14 million	($0.39)	-105.49
Arthur J. Gallagher & Co.	$11.55 billion	7.44	$1.46 billion	$6.52	51.78

Arthur J. Gallagher & Co. has higher revenue and earnings than The Baldwin Insurance Group. The Baldwin Insurance Group 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.

Institutional & Insider Ownership

77.5% of The Baldwin Insurance Group shares are held by institutional investors. Comparatively, 85.5% of Arthur J. Gallagher & Co. shares are held by institutional investors. 20.1% of The Baldwin Insurance Group shares are held by insiders. Comparatively, 1.6% of Arthur J. Gallagher & Co. shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares The Baldwin Insurance Group and Arthur J. Gallagher & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Baldwin Insurance Group	-2.89%	10.57%	3.10%
Arthur J. Gallagher & Co.	12.70%	16.47%	3.71%

Risk and Volatility

The Baldwin Insurance Group has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500. Comparatively, Arthur J. Gallagher & Co. has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Summary

Arthur J. Gallagher & Co. beats The Baldwin Insurance Group on 10 of the 15 factors compared between the two stocks.

About The Baldwin Insurance Group

The Baldwin Insurance Group, Inc. operates as an independent insurance distribution firm that delivers insurance and risk management solutions in the United States. It operates through three segments: Insurance Advisory Solutions; Underwriting, Capacity & Technology Solutions; and Mainstreet Insurance Solutions. The Insurance Advisory Solutions segment provides commercial risk management, employee benefits, and private risk management solutions for businesses and high-net-worth individuals, as well as their families. The Underwriting, Capacity & Technology Solutions segment offers Future platform, that manufactures technology-enabled insurance products suite comprises personal, commercial, and specialty lines; specialty wholesale broker business that delivers professionals, individuals, and niche industry businesses; and reinsurance brokerage services. The Mainstreet Insurance Solutions segment provides personal insurance, commercial insurance, and life and health solutions to individuals and businesses in communities. The company was formerly known as BRP Group, Inc. and changed its name to The Baldwin Insurance Group, Inc. in May 2024. The Baldwin Insurance Group, Inc. was founded in 2011 and is headquartered in Tampa, Florida.

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.