Brown & Brown, Inc. (BRO) vs Marsh (MRSH)

Brown & Brown, Inc. and Marsh are both Insurance Brokers companies. Marsh is the larger, with a market value of $81.1B against $20.2B — 4.0× the size. Brown & Brown, Inc. trades at the lower P/E: 16.9× against 20.8×. Brown & Brown, Inc. grew revenue faster over the last twelve months: 34.2% against 8.33%. Brown & Brown, Inc. has the higher net margin (17.6% vs 14.2%) and the lower return on invested capital (5.75% vs 18.5%). Both pay a dividend; Marsh yields more (1.52% vs 0.67%). Across the 23 metrics below, Brown & Brown, Inc. leads on 14 and Marsh on 9.

Valuation

Metric BRO MRSH Insurance Brokers median
P/E 16.95 20.82 25.35
P/S 2.95 2.94 2.10
P/B 1.59 5.32 2.81
Price to free cash flow 13.83 17.23 18.44
EV/EBITDA 9.88 12.54 12.36
EV/Sales 3.57 3.12 3.00
Earnings yield 5.90% 4.80% 2.64%
Free cash flow yield 7.23% 5.80% 2.30%

Profitability

Metric BRO MRSH Insurance Brokers median
Gross margin 50.56% 100.00% 42.95%
Operating margin 28.69% 21.62% 15.37%
Net margin 17.57% 14.24% 8.77%
Free cash flow margin 21.33% 17.06% 3.89%
Return on equity 9.85% 25.34% 0.00%
Return on assets 4.30% 6.73% 2.23%
Return on invested capital 5.75% 18.49% 5.27%

Growth

Metric BRO MRSH Insurance Brokers median
Revenue growth (TTM) 34.24% 8.33% 7.09%
EPS growth (last fiscal year) (8.67%) 3.06% —
Revenue growth, 5-year CAGR 17.70% 9.39% 9.30%
Net income growth, 5-year CAGR 17.52% 15.59% 0.00%

Health

Metric BRO MRSH Insurance Brokers median
Debt to equity 0.62 1.22 0.19
Current ratio 2.11 1.14 1.55
Net debt to EBITDA 1.99 0.58 0.89

Dividend

Metric BRO MRSH Insurance Brokers median
Dividend yield 0.67% 1.52% 1.36%
Payout ratio 0.17 0.36 0.00

Size

Metric BRO MRSH Insurance Brokers median
Market cap 20.19b 81.09b 1.44b

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