eHealth (NASDAQ: EHTH) and Brown & Brown (NYSE:BRO) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitabiliy, earnings and dividends.

Institutional & Insider Ownership

93.6% of eHealth shares are held by institutional investors. Comparatively, 72.6% of Brown & Brown shares are held by institutional investors. 6.2% of eHealth shares are held by company insiders. Comparatively, 17.0% of Brown & Brown shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.


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.

Risk & Volatility

eHealth has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Brown & Brown has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Earnings & Valuation

This table compares eHealth and Brown & Brown’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
eHealth $192.05 million 1.78 $7.13 million $0.55 33.71
Brown & Brown $1.80 billion 3.38 $573.34 million $1.86 23.91

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.


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
eHealth 5.47% 11.84% 9.45%
Brown & Brown 14.52% 11.10% 4.99%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for eHealth and Brown & Brown, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eHealth 0 1 3 0 2.75
Brown & Brown 1 7 1 0 2.00

eHealth currently has a consensus target price of $17.50, indicating a potential downside of 5.61%. Brown & Brown has a consensus target price of $43.50, indicating a potential downside of 2.18%. Given Brown & Brown’s higher probable upside, analysts plainly believe Brown & Brown is more favorable than eHealth.


Brown & Brown beats eHealth on 9 of the 17 factors compared between the two stocks.

About eHealth

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 (,,, and 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 ( and

About Brown & Brown

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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