Brown & Brown, Inc. (BRO) vs Baldwin Insurance Group, Inc. (BWIN)

Brown & Brown, Inc. and Baldwin Insurance Group, Inc. are both Insurance Brokers companies. Brown & Brown, Inc. is the larger, with a market value of $20.2B against $4.5B — 4.5× the size. Baldwin Insurance Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Brown & Brown, Inc. trades at 16.9×. Brown & Brown, Inc. grew revenue faster over the last twelve months: 34.2% against 19.0%. Brown & Brown, Inc. has the higher net margin (17.6% vs −4.67%) and the higher return on invested capital (5.75% vs −2.29%). Across the 21 metrics below, Brown & Brown, Inc. leads on 18 and Baldwin Insurance Group, Inc. on 3.

Valuation

Metric BRO BWIN Insurance Brokers median
P/E 16.95 n/m 25.35
P/S 2.95 1.70 2.10
P/B 1.59 2.08 2.81
Price to free cash flow 13.83 67.62 18.44
EV/EBITDA 9.88 62.31 12.36
EV/Sales 3.57 2.88 3.00
Earnings yield 5.90% (3.26%) 2.64%
Free cash flow yield 7.23% 1.48% 2.30%

Profitability

Metric BRO BWIN Insurance Brokers median
Gross margin 50.56% 30.33% 42.95%
Operating margin 28.69% (6.88%) 15.37%
Net margin 17.57% (4.67%) 8.77%
Free cash flow margin 21.33% 2.52% 3.89%
Return on equity 9.85% (6.58%) 0.00%
Return on assets 4.30% (1.64%) 2.23%
Return on invested capital 5.75% (2.29%) 5.27%

Growth

Metric BRO BWIN Insurance Brokers median
Revenue growth (TTM) 34.24% 18.95% 7.09%
EPS growth (last fiscal year) (8.67%) (28.21%) —
Revenue growth, 5-year CAGR 17.70% 44.25% 9.30%
Net income growth, 5-year CAGR 17.52% 0.00% 0.00%

Health

Metric BRO BWIN Insurance Brokers median
Debt to equity 0.62 1.73 0.19
Current ratio 2.11 1.07 1.55
Net debt to EBITDA 1.99 6.39 0.89

Dividend

Metric BRO BWIN Insurance Brokers median
Dividend yield 0.67% — 1.36%
Payout ratio 0.17 0.00 0.00

Size

Metric BRO BWIN Insurance Brokers median
Market cap 20.19b 4.47b 1.44b

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