CorVel (NASDAQ: CRVL) and Brown & Brown (NYSE:BRO) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
This table compares CorVel and Brown & Brown’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brown & Brown||22.25%||11.75%||5.12%|
43.9% of CorVel shares are held by institutional investors. Comparatively, 71.3% of Brown & Brown shares are held by institutional investors. 51.4% of CorVel shares are held by company insiders. Comparatively, 17.1% of Brown & Brown shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares CorVel and Brown & Brown’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CorVel||$558.35 million||1.91||$35.69 million||N/A||N/A|
|Brown & Brown||$1.88 billion||4.40||$399.63 million||$0.96||30.89|
Brown & Brown has higher revenue and earnings than CorVel.
Volatility and Risk
CorVel has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Brown & Brown has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
Brown & Brown pays an annual dividend of $0.30 per share and has a dividend yield of 1.0%. CorVel does not pay a dividend. Brown & Brown pays out 31.3% of its earnings in the form of a dividend. Brown & Brown has increased its dividend for 17 consecutive years.
This is a summary of current ratings and target prices for CorVel and Brown & Brown, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brown & Brown||3||6||3||0||2.00|
Brown & Brown has a consensus price target of $27.68, indicating a potential downside of 6.64%. Given Brown & Brown’s higher possible upside, analysts clearly believe Brown & Brown is more favorable than CorVel.
Brown & Brown beats CorVel on 11 of the 15 factors compared between the two stocks.
CorVel Company Profile
CorVel Corporation provides medical cost containment and managed care services to address the medical costs of workers' compensation benefits, automobile insurance claims, and group health insurance benefits. The company offers network solutions, including automated medical fee auditing, preferred provider management and reimbursement services, retrospective utilization review, facility claim review, professional review, pharmacy services, directed care services, medicare solutions, clearinghouse services, independent medical examinations, and inpatient medical bill review. It also provides a range of patient management services comprising claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, life care planning, disability management, liability claims management, and auto claims management services. It serves insurers, third party administrators, self-administered employers, government agencies, municipalities, state funds, and various other industries. CorVel Corporation was founded in 1987 and is based in Irvine, California.
Brown & Brown Company Profile
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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