Arthur J. Gallagher & Co. (NYSE:AJG) and BRP Group (NYSE:BRP) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.
Institutional & Insider Ownership
78.9% of Arthur J. Gallagher & Co. shares are held by institutional investors. Comparatively, 84.8% of BRP Group shares are held by institutional investors. 1.4% of Arthur J. Gallagher & Co. shares are held by company insiders. Comparatively, 35.9% of BRP Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Arthur J. Gallagher & Co. and BRP Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Arthur J. Gallagher & Co.||11.70%||15.89%||4.31%|
Volatility and Risk
Arthur J. Gallagher & Co. has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, BRP Group has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Arthur J. Gallagher & Co. and BRP Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Arthur J. Gallagher & Co.||1||5||6||1||2.54|
Arthur J. Gallagher & Co. presently has a consensus target price of $147.43, indicating a potential upside of 4.67%. BRP Group has a consensus target price of $34.71, indicating a potential upside of 32.50%. Given BRP Group’s stronger consensus rating and higher possible upside, analysts plainly believe BRP Group is more favorable than Arthur J. Gallagher & Co..
Earnings and Valuation
This table compares Arthur J. Gallagher & Co. and BRP Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arthur J. Gallagher & Co.||$7.00 billion||4.15||$818.80 million||$4.72||29.84|
|BRP Group||$137.84 million||18.28||-$8.65 million||$0.20||131.00|
Arthur J. Gallagher & Co. has higher revenue and earnings than BRP Group. Arthur J. Gallagher & Co. is trading at a lower price-to-earnings ratio than BRP Group, indicating that it is currently the more affordable of the two stocks.
Arthur J. Gallagher & Co. beats BRP Group on 8 of the 14 factors compared between the two stocks.
About Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, and third party claims settlement and administration services in the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, India, and the United Kingdom. Its Brokerage segment consists of retail and wholesale insurance brokerage operations. It offers brokerage and consulting services to businesses and organizations, including commercial, not-for-profit, and public entities, as well as individuals in the areas of insurance placement, risk of loss management, and management of employer sponsored benefit programs. This segment also assist retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; acts as a brokerage wholesaler, and managing general agent or managing general underwriter distributing specialized insurance coverage's for underwriting enterprises; and performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance. The company's Risk Management segment provides contract claim settlement and administration services for enterprises and public entities; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent insurance brokers and consultants. It serves commercial, industrial, public entity, religious, and not-for-profit entities. Arthur J. Gallagher & Co. was founded in 1927 and is headquartered in Rolling Meadows, Illinois.
About BRP Group
BRP Group, Inc. markets and sells insurance products and services in the United States. The company operates through four segments: Middle Market, Specialty, MainStreet, and Medicare. The Middle Market segment provides private risk management, commercial risk management, and employee benefits solutions for mid-to-large size businesses, and high net worth individuals and families. The Specialty segment operates as a wholesale co-brokerage platform that delivers programs requiring underwriting and placement services. The MainStreet segment offers personal insurance, commercial insurance, and life and health solutions to individuals and businesses in their communities. The Medicare segment provides consultation for government assistance programs and solutions to seniors and individuals through a network of agents. The company was founded in 2011 and is headquartered in Tampa, Florida.
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