Brown & Brown (NYSE:BRO – Get Free Report) is one of 311 public companies in the “Insurance” industry, but how does it weigh in compared to its competitors? We will compare Brown & Brown to similar businesses based on the strength of its dividends, profitability, analyst recommendations, earnings, institutional ownership, valuation and risk.
Risk & Volatility
Brown & Brown has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Brown & Brown’s competitors have a beta of -1.54, indicating that their average stock price is 254% less volatile than the S&P 500.
Insider and Institutional 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 insiders. Comparatively, 13.6% of shares of all “Insurance” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Brown & Brown and its competitors top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Brown & Brown | $6.81 billion | $1.05 billion | 22.07 |
| Brown & Brown Competitors | $15.63 billion | $1.70 billion | 34.44 |
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.
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 | 17.63% | 13.29% | 5.63% |
| Brown & Brown Competitors | 9.24% | -9.74% | 4.23% |
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.
Analyst Ratings
This is a breakdown of recent recommendations for Brown & Brown and its competitors, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brown & Brown | 1 | 13 | 6 | 1 | 2.33 |
| Brown & Brown Competitors | 3321 | 15619 | 16447 | 737 | 2.40 |
Brown & Brown presently has a consensus price target of $75.53, suggesting 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, equities analysts plainly believe Brown & Brown is more favorable than its competitors.
Summary
Brown & Brown beats its competitors on 8 of the 15 factors compared.
Brown & Brown Company Profile
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.
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