WallStSmart

Brown & Brown Inc (BRO)vsTWFG, Inc. Class A Common Stock (TWFG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Brown & Brown Inc generates 2219% more annual revenue ($5.76B vs $248.51M). BRO leads profitability with a 18.3% profit margin vs 3.2%. BRO trades at a lower P/E of 20.3x. 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

TWFG

Hold

50

out of 100

Grade: D+

Growth: 6.7Profit: 6.0Value: 5.7Quality: 7.8
Piotroski: 5/9Altman Z: 5.47
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BROSignificantly Overvalued (-211.9%)

Margin of Safety

-211.9%

Fair Value

$21.49

Current Price

$64.29

$42.80 premium

UndervaluedFair: $21.49Overvalued
TWFGSignificantly Overvalued (-464.2%)

Margin of Safety

-464.2%

Fair Value

$3.60

Current Price

$17.83

$14.23 premium

UndervaluedFair: $3.60Overvalued

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
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.2%8/10

Strong operational efficiency at 23.2%

TWFG3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
35.8%10/10

Revenue surging 35.8% year-over-year

Altman Z-ScoreHealth
5.4710/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
21.1%8/10

Strong operational efficiency at 21.1%

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%

TWFG4 concerns · Avg: 3.0/10
P/E RatioValuation
34.5x4/10

Premium valuation, high expectations priced in

Market CapQuality
$274.57M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

EPS GrowthGrowth
-50.0%2/10

Earnings declined 50.0%

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 : TWFG

The strongest argument for TWFG centers on Revenue Growth, Altman Z-Score, Operating Margin. Revenue growth of 35.8% demonstrates continued momentum.

Bear Case : BRO

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

Bear Case : TWFG

The primary concerns for TWFG are P/E Ratio, Market Cap, Profit Margin. Thin 3.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

BRO profiles as a growth stock while TWFG is a hypergrowth play — different risk/reward profiles.

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

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

Monitor INSURANCE BROKERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BRO scores higher overall (69/100 vs 50/100), 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.

TWFG, Inc. Class A Common Stock

FINANCIAL SERVICES · INSURANCE BROKERS · USA

TWFG, Inc. Class A Common Stock is a prominent entity in the property and casualty insurance sector, renowned for its customer-centric approach and innovative insurance solutions. The company adeptly navigates the dynamic insurance landscape, bolstered by robust operational excellence and risk management practices. With a diverse product portfolio that enhances competitive positioning and promotes sustainable growth, TWFG presents a compelling investment opportunity for institutional investors. Its commitment to delivering value and fostering long-term relationships positions it for ongoing success in an ever-evolving market environment.

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