ERIE vs. AJG

Last updated Jun 3, 2026

ERIE (Erie Indemnity Company) and AJG (Arthur J. Gallagher & Co.) are both stocks. Both operate in the Insurance Brokers industry within the Financial Services sector. Over the past 10 years, ERIE returned 10.09%/yr vs 17.54%/yr for AJG. At a 0.35 correlation, their price movements are largely independent.

Performance

ERIE vs. AJG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Erie Indemnity Company (ERIE) and Arthur J. Gallagher & Co. (AJG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ERIE achieves a -26.80% return, which is significantly lower than AJG's -20.24% return. Over the past 10 years, ERIE has underperformed AJG with an annualized return of 10.09%, while AJG has yielded a comparatively higher 17.54% annualized return.

ERIE

• 1D: -1.92%
• 1M: -3.45%
• YTD: -26.80%
• 6M: -29.10%
• 1Y: -41.18%
• 3Y*: 0.03%
• 5Y*: 2.93%
• 10Y*: 10.09%

AJG

• 1D: -0.16%
• 1M: -1.12%
• YTD: -20.24%
• 6M: -15.26%
• 1Y: -40.42%
• 3Y*: 0.86%
• 5Y*: 8.37%
• 10Y*: 17.54%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ERIE vs. AJG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ERIE Erie Indemnity Company	-26.80%	-29.40%	24.67%	37.35%	32.03%	-19.98%	52.39%	27.08%	12.54%	11.23%
AJG Arthur J. Gallagher & Co.	-20.24%	-8.03%	27.34%	20.51%	12.44%	39.02%	32.12%	31.79%	19.19%	25.04%

Correlation

The correlation between ERIE and AJG is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.40
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Oct 3, 1995	0.35

The correlation between ERIE and AJG shifts across timeframes, from 0.35 (all time) to 0.46 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

EPS ERIE : $14.49 AJG : $5.74
PE Ratio ERIE : 14.32 AJG : 35.87
PEG Ratio ERIE : 0.74 AJG : 3.72
PS Ratio ERIE : 1.89 AJG : 3.84
Total Revenue (TTM) ERIE : $4.33B AJG : $13.94B
Gross Profit (TTM) ERIE : $784.17M AJG : $7.63B
EBITDA (TTM) ERIE : $715.87M AJG : $3.66B

Return for Risk

ERIE vs. AJG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ERIE

ERIE Risk / Return Rank: 2
ERIE Sharpe Ratio Rank: 1
ERIE Sortino Ratio Rank: 2
ERIE Omega Ratio Rank: 3
ERIE Calmar Ratio Rank: 3
ERIE Martin Ratio Rank: 2

AJG

AJG Risk / Return Rank: 3
AJG Sharpe Ratio Rank: 1
AJG Sortino Ratio Rank: 2
AJG Omega Ratio Rank: 2
AJG Calmar Ratio Rank: 5
AJG Martin Ratio Rank: 5

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ERIE vs. AJG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Erie Indemnity Company (ERIE) and Arthur J. Gallagher & Co. (AJG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ERIE	AJG	Difference
Sharpe ratio Return per unit of total volatility	-1.38	-1.47	+0.10
Sortino ratio Return per unit of downside risk	-2.02	-2.12	+0.09
Omega ratio Gain probability vs. loss probability	0.76	0.73	+0.03
Calmar ratio Return relative to maximum drawdown	-0.95	-0.91	-0.05
Martin ratio Return relative to average drawdown	-1.78	-1.47	-0.31
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ERIE vs. AJG - Sharpe Ratio Comparison

The current ERIE Sharpe Ratio is -1.38, which is comparable to the AJG Sharpe Ratio of -1.47. The chart below compares the historical Sharpe Ratios of ERIE and AJG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ERIE	AJG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.38	-1.47	+0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	0.37	-0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.35	0.76	-0.42
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.47	-0.23

Drawdowns

ERIE vs. AJG - Drawdown Comparison

The maximum ERIE drawdown since its inception was -78.28%, which is greater than AJG's maximum drawdown of -57.49%. Use the drawdown chart below to compare losses from any high point for ERIE and AJG.

Drawdown Indicators

	ERIE	AJG	Difference
Max Drawdown Largest peak-to-trough decline	-78.28%	-57.49%	-20.79%
Max Drawdown (1Y) Largest decline over 1 year	-43.08%	-43.84%	+0.76%
Max Drawdown (3Y) Largest decline over 3 years	-60.81%	-44.40%	-16.41%
Max Drawdown (5Y) Largest decline over 5 years	-60.81%	-44.40%	-16.41%
Max Drawdown (10Y) Largest decline over 10 years	-60.81%	-44.40%	-16.41%
Current Drawdown Current decline from peak	-60.81%	-40.42%	-20.39%
Average Drawdown Average peak-to-trough decline	-33.55%	-12.82%	-20.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	22.97%	27.25%	-4.28%

Volatility

ERIE vs. AJG - Volatility Comparison

Erie Indemnity Company (ERIE) and Arthur J. Gallagher & Co. (AJG) have volatilities of 9.20% and 8.85%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ERIE	AJG	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.20%	8.85%	+0.35%
Volatility (6M) Calculated over the trailing 6-month period	23.06%	21.74%	+1.32%
Volatility (1Y) Calculated over the trailing 1-year period	29.99%	27.54%	+2.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.20%	22.84%	+6.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.12%	23.02%	+6.10%

Dividends

ERIE vs. AJG - Dividend Comparison

ERIE's dividend yield for the trailing twelve months is around 2.72%, more than AJG's 1.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AJG Arthur J. Gallagher & Co.	1.29%	1.00%	0.85%	0.98%	1.08%	1.13%	1.46%	1.81%	2.23%	2.47%	2.93%	3.62%
ERIE Erie Indemnity Company	2.72%	1.90%	1.24%	1.42%	1.79%	2.15%	2.39%	2.17%	2.52%	2.57%	1.95%	3.61%

Financials

ERIE vs. AJG - Profitability Comparison

The chart below illustrates the profitability comparison between Erie Indemnity Company and Arthur J. Gallagher & Co. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

ERIE - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Erie Indemnity Company reported a gross profit of 0.00 and revenue of 1.01B. Therefore, the gross margin over that period was 0.0%.

AJG - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Arthur J. Gallagher & Co. reported a gross profit of 1.42B and revenue of 3.63B. Therefore, the gross margin over that period was 39.1%.

ERIE - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Erie Indemnity Company reported an operating income of 166.79M and revenue of 1.01B, resulting in an operating margin of 16.5%.

AJG - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Arthur J. Gallagher & Co. reported an operating income of 341.00M and revenue of 3.63B, resulting in an operating margin of 9.4%.

ERIE - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Erie Indemnity Company reported a net income of 150.47M and revenue of 1.01B, resulting in a net margin of 14.9%.

AJG - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Arthur J. Gallagher & Co. reported a net income of 151.00M and revenue of 3.63B, resulting in a net margin of 4.2%.

Frequently Asked Questions

Can I hold both ERIE and AJG in my portfolio?

ERIE and AJG have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ERIE or AJG?

ERIE has higher volatility (9.20%) compared to AJG (8.85%). In terms of maximum drawdown, ERIE dropped -78.28% vs AJG's -57.49%.

Which has better risk-adjusted returns?

ERIE currently has the higher Sharpe Ratio (-1.38 vs -1.47), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.