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.
Marsh & McLennan Companies (NYSE:MMC) and Brown & Brown (NYSE:BRO) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, media sentiment, dividends, earnings, risk, community ranking, analyst recommendations, profitability and valuation.
Marsh & McLennan Companies has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Brown & Brown has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
In the previous week, Brown & Brown had 52 more articles in the media than Marsh & McLennan Companies. MarketBeat recorded 75 mentions for Brown & Brown and 23 mentions for Marsh & McLennan Companies. Brown & Brown's average media sentiment score of 0.50 beat Marsh & McLennan Companies' score of 0.13 indicating that Marsh & McLennan Companies is being referred to more favorably in the media.
Brown & Brown has a net margin of 21.95% compared to Brown & Brown's net margin of 16.97%. Brown & Brown's return on equity of 33.92% beat Marsh & McLennan Companies' return on equity.
88.0% of Marsh & McLennan Companies shares are held by institutional investors. Comparatively, 71.0% of Brown & Brown shares are held by institutional investors. 0.3% of Marsh & McLennan Companies shares are held by insiders. Comparatively, 17.0% of Brown & Brown shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Marsh & McLennan Companies presently has a consensus price target of $214.25, suggesting a potential downside of 1.71%. Brown & Brown has a consensus price target of $97.40, suggesting a potential downside of 1.78%. Given Brown & Brown's higher probable upside, equities analysts clearly believe Marsh & McLennan Companies is more favorable than Brown & Brown.
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.
Marsh & McLennan Companies pays an annual dividend of $3.26 per share and has a dividend yield of 1.5%. Brown & Brown pays an annual dividend of $0.52 per share and has a dividend yield of 0.5%. Marsh & McLennan Companies pays out 41.4% of its earnings in the form of a dividend. Brown & Brown pays out 16.0% 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. Marsh & McLennan Companies has raised its dividend for 15 consecutive years and Brown & Brown has raised its dividend for 30 consecutive years.
Marsh & McLennan Companies received 92 more outperform votes than Brown & Brown when rated by MarketBeat users. Likewise, 62.52% of users gave Marsh & McLennan Companies an outperform vote while only 54.89% of users gave Brown & Brown an outperform vote.
Summary
Marsh & McLennan Companies beats Brown & Brown on 12 of the 21 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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