Head to Head Comparison: eHealth (EHTH) & Brown & Brown (BRO)
eHealth (NASDAQ: EHTH) and Brown & Brown (NYSE:BRO) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitabiliy, analyst recommendations, dividends, institutional ownership, valuation and risk.
Institutional & Insider Ownership
93.5% of eHealth shares are held by institutional investors. Comparatively, 72.7% of Brown & Brown shares are held by institutional investors. 6.2% of eHealth shares are held by insiders. Comparatively, 17.0% of Brown & Brown shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares eHealth and Brown & Brown’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brown & Brown||14.52%||11.10%||4.99%|
Risk and Volatility
eHealth has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Brown & Brown has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Valuation and Earnings
This table compares eHealth and Brown & Brown’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|eHealth||$192.05 million||1.83||$7.13 million||$0.55||34.73|
|Brown & Brown||$1.82 billion||3.37||$592.74 million||$1.86||23.53|
Brown & Brown has higher revenue and earnings than eHealth. Brown & Brown is trading at a lower price-to-earnings ratio than eHealth, indicating that it is currently the more affordable of the two stocks.
Brown & Brown pays an annual dividend of $0.54 per share and has a dividend yield of 1.2%. eHealth does not pay a dividend. Brown & Brown pays out 29.0% of its earnings in the form of a dividend. Brown & Brown has increased its dividend for 16 consecutive years.
This is a breakdown of recent recommendations for eHealth and Brown & Brown, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brown & Brown||1||8||1||0||2.00|
eHealth presently has a consensus price target of $17.50, suggesting a potential downside of 8.38%. Brown & Brown has a consensus price target of $42.57, suggesting a potential downside of 2.74%. Given Brown & Brown’s higher possible upside, analysts clearly believe Brown & Brown is more favorable than eHealth.
Brown & Brown beats eHealth on 9 of the 17 factors compared between the two stocks.
eHealth Company Profile
eHealth, Inc. provides a private online source of health insurance for individuals, families and small businesses. The Company is the parent company of eHealthInsurance, a private health insurance exchange where individuals, families and small businesses can compare health insurance products from various insurers side-by-side, and purchase and enroll in coverage online through its Websites (www.eHealth.com, www.eHealthInsurance.com, www.eHealthMedicare.com, www.Medicare.com and www.PlanPrescriber.com) or telephonically through its customer care centers. The Company also offers various online and pharmacy-based tools to help seniors navigate Medicare health insurance options, choose the right plan, and enroll in plans online or telephonically. It markets the availability of individual and family, small business and ancillary health insurance plans of various insurance carriers through its e-commerce platforms (www.eHealth.com and www.eHealthInsurance.com).
Brown & Brown Company Profile
Brown & Brown, Inc. is a diversified insurance agency, wholesale brokerage, insurance programs and service company. The Company markets and sells insurance products and services, in the property, casualty and employee benefits areas. It provides its customers with non-investment insurance contracts, as well as other customized risk management products and services. It operates through four segments: the Retail Segment, which provides a range of insurance products and services to commercial, public and quasi-public entities, and to professional and individual customers; the National Programs Segment, which acts as a managing general agent, provides professional liability and related package products; the Wholesale Brokerage Segment, which markets and sells excess and surplus commercial and personal lines insurance, and the Services Segment, which provides insurance-related services, including third-party claims administration and medical utilization management services.
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