BRO vs. AJG, AON, WTW, ERIE, RYAN, EQH, FCNCA, TROW, EQR, and IX
Should you be buying Brown & Brown stock or one of its competitors? The main competitors of Brown & Brown include Arthur J. Gallagher & Co. (AJG), AON (AON), Willis Towers Watson Public (WTW), Erie Indemnity (ERIE), Ryan Specialty (RYAN), Equitable (EQH), First Citizens BancShares (FCNCA), T. Rowe Price Group (TROW), Equity Residential (EQR), and ORIX (IX). These companies are all part of the "finance" sector.
Brown & Brown (NYSE:BRO) and Arthur J. Gallagher & Co. (NYSE:AJG) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, community ranking, earnings, risk, media sentiment, analyst recommendations and institutional ownership.
In the previous week, Brown & Brown had 71 more articles in the media than Arthur J. Gallagher & Co.. MarketBeat recorded 87 mentions for Brown & Brown and 16 mentions for Arthur J. Gallagher & Co.. Arthur J. Gallagher & Co.'s average media sentiment score of 1.00 beat Brown & Brown's score of 0.20 indicating that Arthur J. Gallagher & Co. is being referred to more favorably in the news media.
Arthur J. Gallagher & Co. received 139 more outperform votes than Brown & Brown when rated by MarketBeat users. Likewise, 60.02% of users gave Arthur J. Gallagher & Co. an outperform vote while only 54.98% of users gave Brown & Brown an outperform vote.
71.0% of Brown & Brown shares are held by institutional investors. Comparatively, 85.5% of Arthur J. Gallagher & Co. shares are held by institutional investors. 17.0% of Brown & Brown shares are held by company insiders. Comparatively, 1.6% of Arthur J. Gallagher & Co. shares are held by company 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.
Brown & Brown has a net margin of 21.09% compared to Arthur J. Gallagher & Co.'s net margin of 10.27%. Arthur J. Gallagher & Co.'s return on equity of 18.94% beat Brown & Brown's return on equity.
Brown & Brown presently has a consensus target price of $87.30, indicating a potential downside of 2.82%. Arthur J. Gallagher & Co. has a consensus target price of $255.77, indicating a potential downside of 0.74%. Given Arthur J. Gallagher & Co.'s stronger consensus rating and higher possible upside, analysts clearly believe Arthur J. Gallagher & Co. is more favorable than Brown & Brown.
Arthur J. Gallagher & Co. has higher revenue and earnings than Brown & Brown. Brown & Brown is trading at a lower price-to-earnings ratio than Arthur J. Gallagher & Co., indicating that it is currently the more affordable of the two stocks.
Brown & Brown pays an annual dividend of $0.52 per share and has a dividend yield of 0.6%. Arthur J. Gallagher & Co. pays an annual dividend of $2.40 per share and has a dividend yield of 0.9%. Brown & Brown pays out 16.0% of its earnings in the form of a dividend. Arthur J. Gallagher & Co. pays out 48.6% 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.
Brown & Brown has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Arthur J. Gallagher & Co. has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.
Summary
Arthur J. Gallagher & Co. beats Brown & Brown on 12 of the 19 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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