Stocks analysis

ABBV vs AJG Stock Comparison

Scores Breakdown

Metric ABBV AJG
πŸ“ˆ Growth 15/30 14/30
πŸ’° Profitability 16/20 14/20
🏦 Financial Health 12/20 16/20
πŸ’΅ Valuation 12/20 8/20
⚠️ Risk (lower is better) 6/10 5/10
Overall Score 59/100 57/100

Side-by-Side Summaries

ABBV Analysis AJG Analysis

πŸ“ˆ Growth & Financial Trajectory

8 quarters show a largely rising topline: 2024Q1 to 2026Q1 Revenues rise from about $12.31B to $15.00B (+β‰ˆ22%). Net income attributable to parent falls from ~$1.29B to ~$0.70B, though peaks around ~$1.86B in 2025Q2–Q3, with 2025Q4 at ~$1.82B. The trend is mixed: topline strength persists, but bottom-line profitability weakens into 2026Q1.

πŸ’° Margins & Cash Flow

Gross margins remain high, broadly ~70–79%, reflecting a durable product mix. Operating leverage remains healthy as volumes expand. Net cash flow from operating activities stays robust, typically around $5.1B–$5.3B per quarter; investing activity is negative (capex/activity), and financing flows cause periodic swings.

πŸ›‘οΈ Balance Sheet & Liquidity

Total assets hover near the mid-to-upper hundreds of billions with liabilities that verge on or exceed assets in some periods, and equity attributable to the parent is often negative (reflecting buybacks). The firm generates solid operating cash flow that supports liquidity despite leverage. Long-term debt runs in the mid-$60B range in recent periods, with current liabilities ~$39–$44B.

⚠️ Key Drivers & Risks

  • Drivers: Robust pharma demand and a durable high-margin mix; ongoing pipeline progress.
  • Risks: Patent/regulatory pressures; elevated leverage and sensitivity to interest rates; potential valuation volatility.

πŸ“ˆ Growth & Financial Trajectory

From 2024 Q2 to 2026 Q1 AJG exhibits a roller-coaster 8-quarter path. Revenue rose to a peak of $4.758B in 2026 Q1 but ended the window at $2.8068B in 2024 Q2, a decline of about 41% over the span. Net income followed a similar volatile pattern, moving from $823M in 2026 Q1 to $285.4M in 2024 Q2, with a notable trough in 2025 Q4 ($210.5M). The sequence includes a mid-window high around 2025 Q1 ($704.4M) before subsiding. Overall, the backdrop shows upside momentum into early 2026 after mid-2024 troughs, but the end-state remains materially below the peak start level. These dynamics imply improving but uneven near-term growth and earnings power.

πŸ’° Margins & Cash Flow

Profitability relief is uneven. Gross-margin proxy (revenues minus costs) fluctuates, with an early-2026 reading around 21.9% (4,758 vs 3,715) but a dip in 2025 Q4 near 5%, reflecting mix/cost pressure. A rising trend into 2025–2026 suggests improving operating leverage, albeit from a weak mid-2024 base. Operating cash flow remained positive in most quarters, notably $957M in 2026 Q1 and $753M in 2025 Q1, while total cash flow was pressured by investing/financing outflows in quarters like 2025 Q2. Cash flow patterns indicate solid core cash generation, offset by episodic outlays.

πŸ›‘οΈ Balance Sheet & Liquidity

AJG carries a sizeable asset base with total assets around $78B (2026 Q1), current assets about $42B and current liabilities near $39.5B, yielding a modest current ratio (~1.06). Long‑term debt sits around $12–13B across recent quarters, with equity around $23–24B. The balance sheet shows solid liquidity and reasonable leverage (debt to equity well below 1), supporting resilience through cyclicality.

⚠️ Key Drivers & Risks

  • Drivers: stable insurance brokerage demand and diversified risk-management services; potential uplift from data-driven analytics.
  • Risks: revenue/earnings cyclicality, sensitivity to pricing and tax mix, and episodic volatility from large capital/dividend outlays could pressure near-term earnings and multiple.