BRO vs. MCO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at BRO and MCO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
MCO’s market capitalization of 89.87 billion USD is significantly greater than BRO’s 34.79 billion USD, highlighting its more substantial market valuation.
MCO carries a higher beta at 1.38, indicating it’s more sensitive to market moves, while BRO (beta: 0.84) exhibits greater stability.
| Symbol | BRO | MCO |
|---|---|---|
| Company Name | Brown & Brown, Inc. | Moody's Corporation |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Brokers | Financial - Data & Stock Exchanges |
| CEO | J. Powell Brown C.P.C.U. | Robert Scott Fauber |
| Price | 106.75 USD | 499.53 USD |
| Market Cap | 34.79 billion USD | 89.87 billion USD |
| Beta | 0.84 | 1.38 |
| Exchange | NYSE | NYSE |
| IPO Date | February 11, 1981 | October 31, 1994 |
| ADR | No | No |
Historical Performance
This chart compares the performance of BRO and MCO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
BRO
16.03%
Insurance - Brokers Industry
- Max
- 40.40%
- Q3
- 30.52%
- Median
- 22.48%
- Q1
- 4.38%
- Min
- -5.38%
BRO’s Return on Equity of 16.03% is on par with the norm for the Insurance - Brokers industry, indicating its profitability relative to shareholder equity is typical for the sector.
MCO
56.36%
Financial - Data & Stock Exchanges Industry
- Max
- 26.26%
- Q3
- 23.14%
- Median
- 14.33%
- Q1
- 11.12%
- Min
- -0.64%
MCO’s Return on Equity of 56.36% is exceptionally high, placing it well beyond the typical range for the Financial - Data & Stock Exchanges industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
BRO
8.92%
Insurance - Brokers Industry
- Max
- 11.62%
- Q3
- 11.18%
- Median
- 8.38%
- Q1
- 2.57%
- Min
- -1.51%
BRO’s Return on Invested Capital of 8.92% is in line with the norm for the Insurance - Brokers industry, reflecting a standard level of efficiency in generating profits from its capital base.
MCO
18.31%
Financial - Data & Stock Exchanges Industry
- Max
- 18.31%
- Q3
- 14.86%
- Median
- 11.07%
- Q1
- 6.75%
- Min
- 4.04%
In the upper quartile for the Financial - Data & Stock Exchanges industry, MCO’s Return on Invested Capital of 18.31% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
BRO
21.33%
Insurance - Brokers Industry
- Max
- 21.33%
- Q3
- 15.86%
- Median
- 10.63%
- Q1
- 1.06%
- Min
- -2.28%
A Net Profit Margin of 21.33% places BRO in the upper quartile for the Insurance - Brokers industry, signifying strong profitability and more effective cost management than most of its peers.
MCO
29.14%
Financial - Data & Stock Exchanges Industry
- Max
- 39.08%
- Q3
- 31.63%
- Median
- 23.20%
- Q1
- 18.09%
- Min
- -0.88%
MCO’s Net Profit Margin of 29.14% is aligned with the median group of its peers in the Financial - Data & Stock Exchanges industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
BRO
28.73%
Insurance - Brokers Industry
- Max
- 28.73%
- Q3
- 23.24%
- Median
- 21.46%
- Q1
- 10.89%
- Min
- 5.35%
An Operating Profit Margin of 28.73% places BRO in the upper quartile for the Insurance - Brokers industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
MCO
40.63%
Financial - Data & Stock Exchanges Industry
- Max
- 53.68%
- Q3
- 40.45%
- Median
- 31.81%
- Q1
- 24.66%
- Min
- 9.71%
An Operating Profit Margin of 40.63% places MCO in the upper quartile for the Financial - Data & Stock Exchanges industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | BRO | MCO |
|---|---|---|
| Return on Equity (TTM) | 16.03% | 56.36% |
| Return on Assets (TTM) | 6.16% | 13.95% |
| Return on Invested Capital (TTM) | 8.92% | 18.31% |
| Net Profit Margin (TTM) | 21.33% | 29.14% |
| Operating Profit Margin (TTM) | 28.73% | 40.63% |
| Gross Profit Margin (TTM) | 45.78% | 69.71% |
Financial Strength
Current Ratio
BRO
1.20
Insurance - Brokers Industry
- Max
- 1.90
- Q3
- 1.76
- Median
- 1.29
- Q1
- 1.14
- Min
- 1.05
BRO’s Current Ratio of 1.20 aligns with the median group of the Insurance - Brokers industry, indicating that its short-term liquidity is in line with its sector peers.
MCO
1.56
Financial - Data & Stock Exchanges Industry
- Max
- 1.60
- Q3
- 1.57
- Median
- 1.06
- Q1
- 0.96
- Min
- 0.62
MCO’s Current Ratio of 1.56 aligns with the median group of the Financial - Data & Stock Exchanges industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
BRO
0.59
Insurance - Brokers Industry
- Max
- 4.59
- Q3
- 2.12
- Median
- 0.59
- Q1
- 0.07
- Min
- 0.01
BRO’s Debt-to-Equity Ratio of 0.59 is typical for the Insurance - Brokers industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
MCO
1.93
Financial - Data & Stock Exchanges Industry
- Max
- 1.09
- Q3
- 0.80
- Median
- 0.62
- Q1
- 0.36
- Min
- 0.04
With a Debt-to-Equity Ratio of 1.93, MCO operates with exceptionally high leverage compared to the Financial - Data & Stock Exchanges industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
BRO
6.81
Insurance - Brokers Industry
- Max
- 29.40
- Q3
- 16.65
- Median
- 7.25
- Q1
- 4.20
- Min
- 1.60
BRO’s Interest Coverage Ratio of 6.81 is positioned comfortably within the norm for the Insurance - Brokers industry, indicating a standard and healthy capacity to cover its interest payments.
MCO
8.64
Financial - Data & Stock Exchanges Industry
- Max
- 27.44
- Q3
- 22.05
- Median
- 10.08
- Q1
- 6.79
- Min
- 1.01
MCO’s Interest Coverage Ratio of 8.64 is positioned comfortably within the norm for the Financial - Data & Stock Exchanges industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | BRO | MCO |
|---|---|---|
| Current Ratio (TTM) | 1.20 | 1.56 |
| Quick Ratio (TTM) | 1.20 | 1.56 |
| Debt-to-Equity Ratio (TTM) | 0.59 | 1.93 |
| Debt-to-Asset Ratio (TTM) | 0.24 | 0.47 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.89 | 1.72 |
| Interest Coverage Ratio (TTM) | 6.81 | 8.64 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for BRO and MCO. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
BRO
0.54%
Insurance - Brokers Industry
- Max
- 2.63%
- Q3
- 1.34%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
BRO’s Dividend Yield of 0.54% is consistent with its peers in the Insurance - Brokers industry, providing a dividend return that is standard for its sector.
MCO
0.89%
Financial - Data & Stock Exchanges Industry
- Max
- 3.86%
- Q3
- 1.44%
- Median
- 1.06%
- Q1
- 0.73%
- Min
- 0.00%
MCO’s Dividend Yield of 0.89% is consistent with its peers in the Financial - Data & Stock Exchanges industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
BRO
15.41%
Insurance - Brokers Industry
- Max
- 45.22%
- Q3
- 39.19%
- Median
- 29.49%
- Q1
- 3.85%
- Min
- 0.00%
BRO’s Dividend Payout Ratio of 15.41% is within the typical range for the Insurance - Brokers industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
MCO
31.34%
Financial - Data & Stock Exchanges Industry
- Max
- 106.40%
- Q3
- 44.44%
- Median
- 31.97%
- Q1
- 29.26%
- Min
- 0.00%
MCO’s Dividend Payout Ratio of 31.34% is within the typical range for the Financial - Data & Stock Exchanges industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | BRO | MCO |
|---|---|---|
| Dividend Yield (TTM) | 0.54% | 0.89% |
| Dividend Payout Ratio (TTM) | 15.41% | 31.34% |
Valuation
Price-to-Earnings Ratio
BRO
29.27
Insurance - Brokers Industry
- Max
- 45.50
- Q3
- 35.20
- Median
- 30.00
- Q1
- 28.34
- Min
- 26.42
BRO’s P/E Ratio of 29.27 is within the middle range for the Insurance - Brokers industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
MCO
42.69
Financial - Data & Stock Exchanges Industry
- Max
- 41.71
- Q3
- 40.17
- Median
- 37.47
- Q1
- 30.61
- Min
- 16.74
At 42.69, MCO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial - Data & Stock Exchanges industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
BRO
2.60
Insurance - Brokers Industry
- Max
- 3.32
- Q3
- 3.00
- Median
- 2.77
- Q1
- 2.41
- Min
- 2.09
BRO’s Forward PEG Ratio of 2.60 is within the middle range of its peers in the Insurance - Brokers industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
MCO
4.67
Financial - Data & Stock Exchanges Industry
- Max
- 4.54
- Q3
- 4.09
- Median
- 4.06
- Q1
- 3.33
- Min
- 2.36
MCO’s Forward PEG Ratio of 4.67 is exceptionally high for the Financial - Data & Stock Exchanges industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
Price-to-Sales Ratio
BRO
7.19
Insurance - Brokers Industry
- Max
- 7.38
- Q3
- 5.34
- Median
- 4.27
- Q1
- 2.32
- Min
- 0.27
BRO’s P/S Ratio of 7.19 is in the upper echelon for the Insurance - Brokers industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
MCO
12.44
Financial - Data & Stock Exchanges Industry
- Max
- 15.75
- Q3
- 12.42
- Median
- 9.37
- Q1
- 6.34
- Min
- 1.69
MCO’s P/S Ratio of 12.44 is in the upper echelon for the Financial - Data & Stock Exchanges industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
BRO
4.43
Insurance - Brokers Industry
- Max
- 10.90
- Q3
- 8.10
- Median
- 6.93
- Q1
- 4.15
- Min
- 1.12
BRO’s P/B Ratio of 4.43 is within the conventional range for the Insurance - Brokers industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
MCO
24.30
Financial - Data & Stock Exchanges Industry
- Max
- 8.57
- Q3
- 8.05
- Median
- 4.77
- Q1
- 3.69
- Min
- 1.19
At 24.30, MCO’s P/B Ratio is at an extreme premium to the Financial - Data & Stock Exchanges industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | BRO | MCO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 29.27 | 42.69 |
| Forward PEG Ratio (TTM) | 2.60 | 4.67 |
| Price-to-Sales Ratio (P/S, TTM) | 7.19 | 12.44 |
| Price-to-Book Ratio (P/B, TTM) | 4.43 | 24.30 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 27.01 | 36.00 |
| EV-to-EBITDA (TTM) | 21.65 | 32.57 |
| EV-to-Sales (TTM) | 7.88 | 13.13 |