Head-To-Head Analysis: Brown & Brown (BRO) versus Its Peers

Brown & Brown (NYSE: BRO) is one of 19 public companies in the “Insurance agents, brokers, & service” industry, but how does it compare to its competitors? We will compare Brown & Brown to related businesses based on the strength of its earnings, institutional ownership, profitability, dividends, valuation, analyst recommendations and risk.

Profitability

This table compares Brown & Brown and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brown & Brown 17.09% 12.03% 5.83%
Brown & Brown Competitors 7.10% 18.05% 9.00%

Risk & Volatility

Brown & Brown has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Brown & Brown’s competitors have a beta of 0.85, indicating that their average stock price is 15% less volatile than the S&P 500.

Insider and Institutional Ownership

72.2% of Brown & Brown shares are held by institutional investors. Comparatively, 64.0% of shares of all “Insurance agents, brokers, & service” companies are held by institutional investors. 16.7% of Brown & Brown shares are held by insiders. Comparatively, 23.2% of shares of all “Insurance agents, brokers, & service” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Brown & Brown and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Brown & Brown $2.01 billion $344.26 million 24.98
Brown & Brown Competitors $13.74 billion $1.05 billion 35.09

Brown & Brown’s competitors have higher revenue and earnings than Brown & Brown. Brown & Brown is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Brown & Brown and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brown & Brown 3 4 2 0 1.89
Brown & Brown Competitors 190 689 775 40 2.39

Brown & Brown presently has a consensus price target of $29.33, indicating a potential downside of 4.54%. As a group, “Insurance agents, brokers, & service” companies have a potential upside of 7.31%. Given Brown & Brown’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Brown & Brown has less favorable growth aspects than its competitors.

Dividends

Brown & Brown pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. Brown & Brown pays out 26.0% of its earnings in the form of a dividend. As a group, “Insurance agents, brokers, & service” companies pay a dividend yield of 1.6% and pay out 32.3% of their earnings in the form of a dividend. Brown & Brown has raised its dividend for 18 consecutive years.

Summary

Brown & Brown competitors beat Brown & Brown on 12 of the 15 factors compared.

Brown & Brown Company Profile

Brown & Brown, Inc. markets and sells insurance products in the United States, England, Canada, Bermuda, and the Cayman Islands. Its Retail segment offers property insurance relating to physical damage to property and resultant interruption of business, or extra expense caused by fire, windstorm, or other perils; casualty insurance relating to legal liabilities, professional liability, cyber-liability, workers' compensation, and commercial and private passenger automobile coverages; fidelity and surety bonds; and life, accident, disability, health, hospitalization, medical, dental, and other ancillary insurance products, as well as risk management, loss control surveys and analysis, consultation, and claims processing services. Its National Programs segment offers professional liability and related package insurance products for dentists, oral surgeons, hygienists, lawyers, certified public accountants, optometrists, opticians, ophthalmologists, insurance agents, financial advisors, registered representatives, securities broker-dealers, benefit administrators, real estate brokers and title agents, and escrow agents, as well as supplementary insurance products related to weddings, events, medical facilities, and cyber liabilities. This segment also offers outsourced product development, marketing, underwriting, actuarial, compliance, and claims and other administrative services to insurance carrier partners; and commercial and public entity-related programs, and flood insurance products. Its Wholesale Brokerage segment markets and sells excess and surplus commercial insurance products to retail insurance agencies. Its Services segment offers third-party claims administration and medical utilization management services in the workers' compensation and all-lines liability arenas, Medicare Set-aside, Social Security disability, Medicare benefits advocacy, and claims adjusting services. The company was founded in 1939 and is headquartered in Daytona Beach, Florida.

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