Brown & Brown Inc (BRO)vsGoosehead Insurance Inc (GSHD)
BRO
Brown & Brown Inc
$64.29
-3.32%
FINANCIAL SERVICES · Cap: $21.95B
GSHD
Goosehead Insurance Inc
$41.19
-1.93%
FINANCIAL SERVICES · Cap: $1.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Brown & Brown Inc generates 1480% more annual revenue ($5.76B vs $364.63M). BRO leads profitability with a 18.3% profit margin vs 7.6%. BRO trades at a lower P/E of 20.3x. BRO earns a higher WallStSmart Score of 69/100 (B-).
BRO
Strong Buy69
out of 100
Grade: B-
GSHD
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-211.9%
Fair Value
$21.49
Current Price
$64.29
$42.80 premium
Margin of Safety
-635.6%
Fair Value
$6.73
Current Price
$41.19
$34.46 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 36.2% year-over-year
Reasonable price relative to book value
Strong operational efficiency at 23.2%
Every $100 of equity generates 176 in profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.3%
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Earnings declined 16.2%
Smaller company, higher risk/reward
7.6% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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 : GSHD
The strongest argument for GSHD centers on Return on Equity, Debt/Equity, Operating Margin. Revenue growth of 12.2% demonstrates continued momentum.
Bear Case : BRO
The primary concerns for BRO are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : GSHD
The primary concerns for GSHD are Market Cap, Profit Margin, Piotroski F-Score. A P/E of 42.4x leaves little room for execution misses.
Key Dynamics to Monitor
BRO profiles as a growth stock while GSHD is a value play — different risk/reward profiles.
GSHD carries more volatility with a beta of 1.62 — 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 47/100), 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.
Goosehead Insurance Inc
FINANCIAL SERVICES · INSURANCE BROKERS · USA
Goosehead Insurance, Inc. is a portfolio company of Goosehead Financial, LLC providing personal lines insurance agency services in the United States. The company is headquartered in Westlake, Texas.
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