BRO vs. MMC, AON, AJG, EHTH, WTW, ERIE, RYAN, EQH, ACT, and CRVL
Should you be buying Brown & Brown stock or one of its competitors? The main competitors of Brown & Brown include Marsh & McLennan Companies (MMC), AON (AON), Arthur J. Gallagher & Co. (AJG), eHealth (EHTH), Willis Towers Watson Public (WTW), Erie Indemnity (ERIE), Ryan Specialty (RYAN), Equitable (EQH), Enact (ACT), and CorVel (CRVL). These companies are all part of the "insurance agents, brokers, & service" industry.
Brown & Brown (NYSE:BRO) and Marsh & McLennan Companies (NYSE:MMC) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, community ranking, dividends, risk, earnings, media sentiment and valuation.
Brown & Brown has a net margin of 21.09% compared to Marsh & McLennan Companies' net margin of 16.84%. Marsh & McLennan Companies' return on equity of 34.14% beat Brown & Brown's return on equity.
Brown & Brown pays an annual dividend of $0.52 per share and has a dividend yield of 0.6%. Marsh & McLennan Companies pays an annual dividend of $2.84 per share and has a dividend yield of 1.4%. Brown & Brown pays out 16.0% of its earnings in the form of a dividend. Marsh & McLennan Companies pays out 36.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
71.0% of Brown & Brown shares are held by institutional investors. Comparatively, 88.0% of Marsh & McLennan Companies shares are held by institutional investors. 17.0% of Brown & Brown shares are held by company insiders. Comparatively, 0.3% of Marsh & McLennan Companies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Brown & Brown has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Marsh & McLennan Companies has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.
Marsh & McLennan Companies has higher revenue and earnings than Brown & Brown. Marsh & McLennan Companies is trading at a lower price-to-earnings ratio than Brown & Brown, indicating that it is currently the more affordable of the two stocks.
Brown & Brown presently has a consensus price target of $89.40, indicating a potential downside of 0.12%. Marsh & McLennan Companies has a consensus price target of $210.27, indicating a potential upside of 1.29%. Given Marsh & McLennan Companies' higher possible upside, analysts plainly believe Marsh & McLennan Companies is more favorable than Brown & Brown.
Marsh & McLennan Companies received 97 more outperform votes than Brown & Brown when rated by MarketBeat users. Likewise, 62.83% of users gave Marsh & McLennan Companies an outperform vote while only 55.03% of users gave Brown & Brown an outperform vote.
In the previous week, Brown & Brown had 44 more articles in the media than Marsh & McLennan Companies. MarketBeat recorded 52 mentions for Brown & Brown and 8 mentions for Marsh & McLennan Companies. Marsh & McLennan Companies' average media sentiment score of 1.26 beat Brown & Brown's score of 0.19 indicating that Marsh & McLennan Companies is being referred to more favorably in the news media.
Summary
Marsh & McLennan Companies beats Brown & Brown on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BRO and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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