Arthur J Gallagher & Co (NYSE: AJG) and KERING S A/ADR (OTCMKTS:PPRUY) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
This is a breakdown of current recommendations for Arthur J Gallagher & Co and KERING S A/ADR, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Arthur J Gallagher & Co||0||4||7||0||2.64|
|KERING S A/ADR||0||0||2||0||3.00|
This table compares Arthur J Gallagher & Co and KERING S A/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Arthur J Gallagher & Co||10.34%||18.19%||5.63%|
|KERING S A/ADR||N/A||N/A||N/A|
Arthur J Gallagher & Co pays an annual dividend of $1.64 per share and has a dividend yield of 2.5%. KERING S A/ADR pays an annual dividend of $0.69 per share and has a dividend yield of 1.2%. Arthur J Gallagher & Co pays out 53.6% of its earnings in the form of a dividend. Arthur J Gallagher & Co has raised its dividend for 7 consecutive years. Arthur J Gallagher & Co is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Arthur J Gallagher & Co has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, KERING S A/ADR has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
Insider and Institutional Ownership
81.2% of Arthur J Gallagher & Co shares are held by institutional investors. Comparatively, 0.0% of KERING S A/ADR shares are held by institutional investors. 1.6% of Arthur J Gallagher & Co shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Arthur J Gallagher & Co and KERING S A/ADR’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arthur J Gallagher & Co||$6.16 billion||1.96||$463.10 million||$3.06||21.70|
|KERING S A/ADR||$17.49 billion||4.26||$2.02 billion||N/A||N/A|
KERING S A/ADR has higher revenue and earnings than Arthur J Gallagher & Co.
Arthur J Gallagher & Co beats KERING S A/ADR on 10 of the 15 factors compared between the two stocks.
About Arthur J Gallagher & Co
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, and third party claims settlement and administration services to entities in the United States and internationally. Its Brokerage segment consists of retail and wholesale insurance brokerage operations. This segment offers retail brokerage services, which negotiate and place property/casualty, employer-provided health and welfare insurance, and retirement solutions primarily for middle-market commercial, industrial, public entity, religious, and not-for-profit entities. It also provides consulting, management, and administrative services. This segment's wholesale brokerage operations assist brokers and agents in the placement of specialized and hard-to-place insurance programs. It also acts as a brokerage wholesaler, and managing general agent or managing general underwriter distributing specialized insurance coverage's for underwriting enterprises; and performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance. The company's Risk Management segment offers contract claim settlement, claim administration, loss control, and risk management consulting services for commercial, not-for-profit, and captive and public entities, as well as various other organizations that choose to self-insure their property/casualty coverage's; and for underwriting enterprises, which choose to outsource their property/casualty claims departments. This segment also offers integrated disability management programs, as well as information, risk control consulting, and appraisal services. The company offers its services through a network of correspondent insurance brokers and consultants. Arthur J. Gallagher & Co. was founded in 1927 and is headquartered in Rolling Meadows, Illinois.
About KERING S A/ADR
Kering SA develops, designs, manufactures, markets, and sells apparel and accessories worldwide. The company offers shoes; leather goods, including handbags and wallets, and other leather products; eyewear and textile accessories; jewelry and watches; and outerwear, denims, T-shirts, and formalwear for men, as well as ready-to-wear products for women. It also provides perfumes and cosmetics; and sports products. The company provides its products under the Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier, Boucheron, Dodo, Girard-Perregaux, Pomellato, Qeelin, and Ulysse Nardin, Puma, Volcom, Cobra, and Kering brand names. It sells its products through department stores, multi-brand stores, and franchise stores, as well as retail channels and e-commerce Websites. The company was formerly known as PPR SA and changed its name to Kering SA in June 2013. Kering SA was founded in 1963 and is based in Paris, France.
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