Brown & Brown, Inc. (BRO) vs Willis Towers Watson Public Limited Company (WTW)

Brown & Brown, Inc. and Willis Towers Watson Public Limited Company are both Insurance Brokers companies. Willis Towers Watson Public Limited Company is the larger, with a market value of $28.8B against $22.8B — 1.3× the size. Willis Towers Watson Public Limited Company trades at the lower P/E: 19.3× against 19.3×. Brown & Brown, Inc. grew revenue faster over the last twelve months: 34.2% against 3.00%. Brown & Brown, Inc. has the higher net margin (17.6% vs 15.5%) and the lower return on invested capital (5.75% vs 11.1%). Both pay a dividend; Willis Towers Watson Public Limited Company yields more (1.21% vs 0.95%). Across the 21 metrics below, Brown & Brown, Inc. leads on 11 and Willis Towers Watson Public Limited Company on 10.

Valuation

Metric BRO WTW Insurance Brokers median
P/E 19.33 19.31 25.24
P/S 3.36 2.93 2.73
P/B 1.81 3.81 2.91
Price to free cash flow 15.77 38.14 20.97
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.17% 5.18% 2.41%
Free cash flow yield 6.34% 2.62% 2.15%

Profitability

Metric BRO WTW Insurance Brokers median
Gross margin 50.56% 100.00% 42.95%
Operating margin 28.69% 22.23% 15.37%
Net margin 17.57% 15.49% 8.77%
Free cash flow margin 21.33% 16.72% 3.89%
Return on equity 9.85% 19.62% 0.00%
Return on assets 4.30% 5.30% 2.23%
Return on invested capital 5.75% 11.08% 5.27%

Growth

Metric BRO WTW Insurance Brokers median
Revenue growth (TTM) 34.24% 3.00% 7.09%
EPS growth (last fiscal year) (8.67%) 1,793.75% (9.12%)
Revenue growth, 5-year CAGR 17.70% 2.42% 9.30%
Net income growth, 5-year CAGR 17.52% 10.01% 0.00%

Health

Metric BRO WTW Insurance Brokers median
Debt to equity 0.62 0.84 0.19
Current ratio 2.11 1.68 1.55
Net debt to EBITDA 1.99 1.20 0.89

Dividend

Metric BRO WTW Insurance Brokers median
Dividend yield 0.95% 1.21% 1.08%
Payout ratio 0.20 0.23 0.23

Size

Metric BRO WTW Insurance Brokers median
Market cap 22.75b 28.82b 1.49b

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