WallStSmart

Brown & Brown Inc (BRO)vsErie Indemnity Company (ERIE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Brown & Brown Inc generates 42% more annual revenue ($5.76B vs $4.07B). BRO leads profitability with a 18.3% profit margin vs 13.8%. BRO appears more attractively valued with a PEG of 1.51. BRO earns a higher WallStSmart Score of 69/100 (B-).

BRO

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 7.3Quality: 4.5
Piotroski: 2/9

ERIE

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 8.0Value: 4.7Quality: 6.3
Piotroski: 2/9Altman Z: 5.22
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BROSignificantly Overvalued (-210.0%)

Margin of Safety

-210.0%

Fair Value

$21.62

Current Price

$66.50

$44.88 premium

UndervaluedFair: $21.62Overvalued
ERIESignificantly Overvalued (-285.5%)

Margin of Safety

-285.5%

Fair Value

$72.76

Current Price

$240.53

$167.77 premium

UndervaluedFair: $72.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BRO3 strengths · Avg: 8.7/10
Revenue GrowthGrowth
36.2%10/10

Revenue surging 36.2% year-over-year

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.2%8/10

Strong operational efficiency at 23.2%

ERIE2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
5.2210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
26.2%9/10

Every $100 of equity generates 26 in profit

Areas to Watch

BRO3 concerns · Avg: 3.0/10
PEG RatioValuation
1.514/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-16.2%2/10

Earnings declined 16.2%

ERIE4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.672/10

Expensive relative to growth rate

EPS GrowthGrowth
-58.4%2/10

Earnings declined 58.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : BRO

The strongest argument for BRO centers on Revenue Growth, Price/Book, Operating Margin. Profitability is solid with margins at 18.3% and operating margin at 23.2%. Revenue growth of 36.2% demonstrates continued momentum.

Bull Case : ERIE

The strongest argument for ERIE centers on Altman Z-Score, Return on Equity.

Bear Case : BRO

The primary concerns for BRO are PEG Ratio, Piotroski F-Score, EPS Growth.

Bear Case : ERIE

The primary concerns for ERIE are Revenue Growth, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

BRO profiles as a growth stock while ERIE is a value play — different risk/reward profiles.

BRO carries more volatility with a beta of 0.80 — expect wider price swings.

BRO is growing revenue faster at 36.2% — sustainability is the question.

BRO generates stronger free cash flow (424M), providing more financial flexibility.

Bottom Line

BRO scores higher overall (69/100 vs 49/100), backed by strong 18.3% margins and 36.2% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Brown & Brown Inc

FINANCIAL SERVICES · INSURANCE BROKERS · USA

Brown & Brown, Inc. markets and sells insurance products and services in the United States, Bermuda, Canada, the Cayman Islands, Ireland, and the United Kingdom. The company is headquartered in Daytona Beach, Florida.

Erie Indemnity Company

FINANCIAL SERVICES · INSURANCE BROKERS · USA

Erie Indemnity Company is an administrative agent for underwriters on the Erie Insurance Exchange in the United States. The company is headquartered in Erie, Pennsylvania.

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