Comparing Brown & Brown (BRO) and The Competition

Brown & Brown (NYSE:BRO – Get Free Report) is one of 311 publicly-traded companies in the “Insurance” industry, but how does it compare to its rivals? We will compare Brown & Brown to similar companies based on the strength of its valuation, institutional ownership, profitability, earnings, risk, analyst recommendations and dividends.

Profitability

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

Analyst Ratings

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

Brown & Brown presently has a consensus target price of $75.53, indicating a potential upside of 8.32%. As a group, “Insurance” companies have a potential upside of 6.39%. Given Brown & Brown’s higher possible upside, analysts plainly believe Brown & Brown is more favorable than its rivals.

Dividends

Brown & Brown pays an annual dividend of $0.72 per share and has a dividend yield of 1.0%. Brown & Brown pays out 22.8% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 30.4% of their earnings in the form of a dividend.

Earnings and Valuation

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

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

Institutional & Insider Ownership

71.0% of Brown & Brown shares are held by institutional investors. Comparatively, 55.9% of shares of all “Insurance” companies are held by institutional investors. 13.1% of Brown & Brown shares are held by company insiders. Comparatively, 13.6% of shares of all “Insurance” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Brown & Brown has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Brown & Brown’s rivals have a beta of -1.54, suggesting that their average share price is 254% less volatile than the S&P 500.

Summary

Brown & Brown beats its rivals on 8 of the 15 factors compared.

Brown & Brown Company Profile

(Get Free Report)

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.