Arthur J. Gallagher & Co. (NYSE:AJG) and AIX (NASDAQ:AIFU) Critical Comparison

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

Insider and Institutional Ownership

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

Profitability

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

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

Analyst Ratings

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

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

Arthur J. Gallagher & Co. has a consensus price target of $307.93, suggesting a potential downside of 4.90%. Given Arthur J. Gallagher & Co.’s stronger consensus rating and higher probable upside, analysts clearly believe Arthur J. Gallagher & Co. is more favorable than AIX.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AIX	$2.36 billion	0.01	$39.50 million	$0.73	0.52
Arthur J. Gallagher & Co.	$11.55 billion	7.14	$1.46 billion	$6.52	49.66

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 and Risk

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

Summary

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

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.

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.