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Arch Capital Group vs Arthur J. Gallagher & Co.: Which Stock Looks Stronger in 2026?

Arch Capital holds the cleaner structural position, with the lead spread across profitability and valuation. Arthur J. Gallagher does not offset that deficit through any equally strong structural edge elsewhere. The market setup broadly confirms the structural lead — Arch Capital holds the more constructive position. That puts structure and market broadly in agreement — Arch Capital's lead looks more confirmed than conflicted.

The comparison is based on similar long-term financial trajectories, not sector labels.

Updated 2026-04-05

This is not just a one-metric split: both profitability and valuation materially support the lead. The overall score gap is 40 points in favour of Arch Capital Group Ltd..

Trajectory Similarity
0.68
Moderately similar
Peer-set rank: #8
within Arch Capital Group Ltd.'s functional peer set

This pair is matched through long-term financial trajectory similarity within the selected peer universe.

This level of similarity points to a meaningful structural match, though not a tight one.

Most of the shared profile comes through investment intensity and recent revenue growth.

Similarity drivers
investment intensityrecent revenue growth
How to read the score
0.85–1.00 · Very similar0.70–0.84 · Similar0.55–0.69 · Moderately similarbelow 0.55 · Loose match
Peer-Relative Score
ACGL
Arch Capital Group Ltd.
76
Peer-Score
Signal qualityMedium
vs
AJG
Arthur J. Gallagher & Co.
36
Peer-Score
Signal qualityMedium

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

Score differences across key dimensions.

Dimension spread: ACGL vs AJG Profitability 69 7 Stability 72 57 Valuation 88 44 Growth 72 45 ACGL AJG
Gap Ranking
#1 Profitability +62
#2 Valuation +44
#3 Growth +27
#4 Stability +15
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for ACGL and AJG Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer ACGLAJG Relative valuation Structural strength

Arch Capital Group Ltd. looks stronger both structurally and on relative valuation.

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Relative Position vs Comparable Companies
Profitability
Arch Capital Group Ltd. ranks near the top of the group on profitability; Arthur J. Gallagher & Co. sits in the weaker half.
Valuation
On valuation, the edge is clear — both rank well, but Arch Capital Group Ltd. sits noticeably higher.
Profitability — Dominant Gap
ACGL
69
AJG
7
Gap+62in favour of ACGL

The profitability lead is mainly driven by a 19.1-point operating margin advantage.

What else supports the lead

A forward P/E that is 5 turns lower adds a second meaningful layer to the lead.

What this means for the comparison

The lead is built on both profitability and valuation, making it broader than a single-dimension result.

Explore full peer positioning in AssetNext

Break down the ACGL vs AJG comparison across all dimensions with the full interactive tool.

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Similar profitability-and-valuation comparisons

Explore how ACGL and AJG each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.