Crawford & Company (NYSE:CRD.A) and Brown & Brown (NYSE:BRO) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
This table compares Crawford & Company and Brown & Brown’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Crawford & Company||1.35%||25.51%||6.11%|
|Brown & Brown||23.15%||12.36%||6.01%|
Crawford & Company pays an annual dividend of $0.28 per share and has a dividend yield of 3.1%. Brown & Brown pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Brown & Brown pays out 33.3% of its earnings in the form of a dividend. Brown & Brown has increased its dividend for 17 consecutive years.
This is a breakdown of current recommendations for Crawford & Company and Brown & Brown, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Crawford & Company||0||0||1||0||3.00|
|Brown & Brown||3||5||3||0||2.00|
Crawford & Company presently has a consensus target price of $10.00, suggesting a potential upside of 11.73%. Brown & Brown has a consensus target price of $28.70, suggesting a potential upside of 1.85%. Given Crawford & Company’s stronger consensus rating and higher probable upside, analysts clearly believe Crawford & Company is more favorable than Brown & Brown.
Risk and Volatility
Crawford & Company has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Brown & Brown has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
Insider & Institutional Ownership
18.6% of Crawford & Company shares are owned by institutional investors. Comparatively, 71.5% of Brown & Brown shares are owned by institutional investors. 48.8% of Crawford & Company shares are owned by insiders. Comparatively, 17.1% of Brown & Brown shares are owned by 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.
Valuation & Earnings
This table compares Crawford & Company and Brown & Brown’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Crawford & Company||$1.16 billion||0.42||$27.66 million||N/A||N/A|
|Brown & Brown||$1.88 billion||4.18||$399.63 million||$0.96||29.35|
Brown & Brown has higher revenue and earnings than Crawford & Company.
Crawford & Company Company Profile
Crawford & Company (Crawford) is an independent provider of claims management solutions to insurance and self-insured entities. The Company’s Crawford Solution offers claims services, business process outsourcing and consulting services for various product lines, including property and casualty claims management; workers’ compensation claims and medical management, and legal settlement administration. Crawford conducts its operations through four segments: U.S. Services, which primarily serves the property and casualty insurance company markets in the United States; International, which serves the property and casualty insurance company, and self-insurance markets outside the United States; Broadspire, which serves the self-insurance marketplace, primarily in the United States, and Garden City Group, which serves the class action, regulatory, mass tort, bankruptcy and other legal settlement markets, primarily in the United States.
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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