Allianz (OTCMKTS: AZSEY) and Brown & Brown (NYSE:BRO) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.
Risk & Volatility
Allianz has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Brown & Brown has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
0.2% of Allianz shares are held by institutional investors. Comparatively, 36.2% of Brown & Brown shares are held by institutional investors. 17.1% of Brown & Brown shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Allianz and Brown & Brown’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Allianz||$123.87 billion||0.83||$7.69 billion||$1.66||13.99|
|Brown & Brown||$1.88 billion||3.77||$399.63 million||$0.96||26.82|
Allianz has higher revenue and earnings than Brown & Brown. Allianz is trading at a lower price-to-earnings ratio than Brown & Brown, indicating that it is currently the more affordable of the two stocks.
This table compares Allianz and Brown & Brown’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brown & Brown||21.24%||11.19%||4.70%|
Allianz pays an annual dividend of $1.20 per share and has a dividend yield of 5.2%. Brown & Brown pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. Allianz pays out 72.3% of its earnings in the form of a dividend. Brown & Brown pays out 31.3% 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 raised its dividend for 17 consecutive years.
This is a summary of current recommendations and price targets for Allianz and Brown & Brown, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brown & Brown||3||4||2||0||1.89|
Brown & Brown has a consensus target price of $24.56, suggesting a potential downside of 4.61%. Given Brown & Brown’s higher probable upside, analysts plainly believe Brown & Brown is more favorable than Allianz.
Brown & Brown beats Allianz on 10 of the 17 factors compared between the two stocks.
Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide. The company's Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel insurance products to private and corporate customers. Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private health, supplemental health, and long-term care insurance products. The company's Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, as well as alternative products; and investment management services. Its Corporate and Other segment provides various banking products for corporate and retail clients; and alternative investment management services in the private equity, real estate, renewable energy, and infrastructure sectors. Allianz SE was founded in 1890 and is headquartered in Munich, Germany.
About Brown & Brown
Brown & Brown, Inc. markets and sells insurance products in the United States, England, Canada, Bermuda, and the Cayman Islands. Its Retail segment offers property insurance relating to physical damage to property and resultant interruption of business, or extra expense caused by fire, windstorm, or other perils; casualty insurance relating to legal liabilities, professional liability, cyber-liability, workers' compensation, and commercial and private passenger automobile coverages; fidelity and surety bonds; and life, accident, disability, health, hospitalization, medical, dental, and other ancillary insurance products, as well as risk management, loss control surveys and analysis, consultation, and claims processing services. Its National Programs segment offers professional liability and related package insurance products for dentists, oral surgeons, hygienists, lawyers, certified public accountants, optometrists, opticians, ophthalmologists, insurance agents, financial advisors, registered representatives, securities broker-dealers, benefit administrators, real estate brokers and title agents, and escrow agents, as well as supplementary insurance products related to weddings, events, medical facilities, and cyber liabilities. This segment also offers outsourced product development, marketing, underwriting, actuarial, compliance, and claims and other administrative services to insurance carrier partners; and commercial and public entity-related programs, and flood insurance products. Its Wholesale Brokerage segment markets and sells excess and surplus commercial insurance products to retail insurance agencies. Its Services segment offers third-party claims administration and medical utilization management services in the workers' compensation and all-lines liability arenas, Medicare Set-aside, Social Security disability, Medicare benefits advocacy, and claims adjusting services. The company was founded in 1939 and is headquartered in Daytona Beach, Florida.
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