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

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

Volatility & Risk

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arthur J. Gallagher & Co.	$11.55 billion	7.52	$1.46 billion	$6.52	52.30
The Baldwin Insurance Group	$1.38 billion	3.50	-$90.14 million	($0.39)	-104.92

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.

Profitability

This table compares Arthur J. Gallagher & Co. and The Baldwin Insurance Group’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%
The Baldwin Insurance Group	-2.89%	10.57%	3.10%

Insider and Institutional Ownership

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

Analyst Ratings

This is a summary of current ratings and target prices for Arthur J. Gallagher & Co. and The Baldwin Insurance Group, 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
The Baldwin Insurance Group	1	1	4	1	2.71

Arthur J. Gallagher & Co. presently has a consensus price target of $307.93, indicating a potential downside of 9.70%. The Baldwin Insurance Group has a consensus price target of $43.50, indicating a potential upside of 6.30%. Given The Baldwin Insurance Group’s stronger consensus rating and higher probable upside, analysts clearly believe The Baldwin Insurance Group is more favorable than Arthur J. Gallagher & Co..

Summary

Arthur J. Gallagher & Co. beats The Baldwin Insurance Group on 10 of the 15 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 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.