Assicurazioni Generali (OTCMKTS:ARZGY) vs. Brown & Brown (NYSE:BRO) Head-To-Head Review

Assicurazioni Generali (OTCMKTS:ARZGY) and Brown & Brown (NYSE:BRO) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Assicurazioni Generali and Brown & Brown, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Assicurazioni Generali	0	0	0	0	0.00
Brown & Brown	1	14	4	0	2.16

Brown & Brown has a consensus target price of $76.80, indicating a potential upside of 4.75%. Given Brown & Brown’s stronger consensus rating and higher possible upside, analysts plainly believe Brown & Brown is more favorable than Assicurazioni Generali.

Valuation and Earnings

This table compares Assicurazioni Generali and Brown & Brown”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Assicurazioni Generali	N/A	N/A	N/A	$0.62	41.09
Brown & Brown	$5.90 billion	4.16	$1.05 billion	$3.17	23.13

Brown & Brown has higher revenue and earnings than Assicurazioni Generali. Brown & Brown is trading at a lower price-to-earnings ratio than Assicurazioni Generali, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Assicurazioni Generali and Brown & Brown’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Assicurazioni Generali	N/A	N/A	N/A
Brown & Brown	17.75%	13.17%	5.56%

Insider and Institutional Ownership

71.0% of Brown & Brown shares are owned by institutional investors. 13.1% of Brown & Brown shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Brown & Brown beats Assicurazioni Generali on 10 of the 11 factors compared between the two stocks.

About Assicurazioni Generali

Assicurazioni Generali S.p.A. engages in the provision of various insurance solutions under the Generali brand worldwide. The company operates through Life, Property & Casualty, and Asset & Wealth Management segments. It offers savings, individual and family protection, and unit linked, as well as motor third-party liability, home, casualty, accident, health, and commercial and industrial risks insurance products; and insurance plans for multinational companies. The company also provides equity and fixed-income funds, and alternative products. The company was formerly known as Assicurazioni Generali Austro-Italiche and changed its name to Assicurazioni Generali S.p.A. in 1848. Assicurazioni Generali S.p.A. was founded in 1831 and is headquartered in Trieste, Italy.

About Brown & Brown

Brown & Brown, Inc. is an insurance agency, wholesale brokerage, insurance program and service organization. It engages in the provision of insurance brokerage services and casualty insurance underwriting services. It operates through the following segments: Retail, National Programs, Wholesale Brokerage, and Services. The Retail Segment receives fees in lieu of commissions. The National Programs segment acts as a managing general agent and provides professional liability and related package products for certain professionals, a range of insurance products for individuals, flood coverage, and targeted products and services designated for specific industries, trade groups, governmental entities and market niches. The Wholesale Brokerage segment markets and sells excess and surplus commercial and personal lines insurance, primarily through independent agents and brokers, as well as the company’s retail agents. The Services segment provides insurance-related services, including third-party claims administration and comprehensive medical utilization management services in both the workers’ compensation and all-lines liability arenas, as well as Medicare Set-aside services, social security disability and Medicare benefits advocacy services and claims adjusting services. The company was founded by J. Adrian Brown and Charles Covington Owen in 1939 and is headquartered in Daytona Beach, FL.