Analyzing Oxbridge Re (NASDAQ:OXBR) and Brown & Brown (NYSE:BRO)

Brown & Brown (NYSE:BRO) and Oxbridge Re (NASDAQ:OXBR) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Risk & Volatility

Brown & Brown has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Oxbridge Re has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.

Institutional and Insider Ownership

71.0% of Brown & Brown shares are owned by institutional investors. Comparatively, 5.6% of Oxbridge Re shares are owned by institutional investors. 17.0% of Brown & Brown shares are owned by company insiders. Comparatively, 16.5% of Oxbridge Re shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Brown & Brown and Oxbridge Re’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brown & Brown	19.89%	15.10%	6.11%
Oxbridge Re	-151.89%	-59.48%	-35.20%

Valuation and Earnings

This table compares Brown & Brown and Oxbridge Re”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brown & Brown	$4.95 billion	6.44	$993.00 million	$3.47	27.85
Oxbridge Re	$550,000.00	22.07	-$2.73 million	($0.41)	-3.93

Brown & Brown has higher revenue and earnings than Oxbridge Re. Oxbridge Re is trading at a lower price-to-earnings ratio than Brown & Brown, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Brown & Brown and Oxbridge Re, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brown & Brown	1	7	7	0	2.40
Oxbridge Re	0	0	1	0	3.00

Brown & Brown presently has a consensus target price of $112.6429, indicating a potential upside of 16.55%. Oxbridge Re has a consensus target price of $5.00, indicating a potential upside of 210.56%. Given Oxbridge Re’s stronger consensus rating and higher probable upside, analysts clearly believe Oxbridge Re is more favorable than Brown & Brown.

Summary

Brown & Brown beats Oxbridge Re on 10 of the 14 factors compared between the two stocks.

About Brown & Brown

Brown & Brown, Inc. is an insurance agency, wholesale brokerage, insurance program and service organization. It engages in the provision of insurance brokerage services and casualty insurance underwriting services. It operates through the following segments: Retail, National Programs, Wholesale Brokerage, and Services. The Retail Segment receives fees in lieu of commissions. The National Programs segment acts as a managing general agent and provides professional liability and related package products for certain professionals, a range of insurance products for individuals, flood coverage, and targeted products and services designated for specific industries, trade groups, governmental entities and market niches. The Wholesale Brokerage segment markets and sells excess and surplus commercial and personal lines insurance, primarily through independent agents and brokers, as well as the company’s retail agents. The Services segment provides insurance-related services, including third-party claims administration and comprehensive medical utilization management services in both the workers’ compensation and all-lines liability arenas, as well as Medicare Set-aside services, social security disability and Medicare benefits advocacy services and claims adjusting services. The company was founded by J. Adrian Brown and Charles Covington Owen in 1939 and is headquartered in Daytona Beach, FL.

About Oxbridge Re

Oxbridge Re Holdings Limited, through its subsidiaries, provides specialty property and casualty reinsurance solutions. The company underwrites collateralized reinsurance contracts primarily for property and casualty insurance companies in the Gulf Coast region of the United States. It also issues reinsurance contracts through digital securities by blockchain technology. In addition, the company offers fractional aircraft ownership, jet card, aircraft brokerage, and charter service through its fleet of private aircraft. It distributes its products and solutions through reinsurance brokers. Oxbridge Re Holdings Limited was incorporated in 2013 and is headquartered in George Town, the Cayman Islands.