XChange TEC.INC (NASDAQ:XHG) & Brown & Brown (NYSE:BRO) Critical Comparison

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

Insider and Institutional Ownership

71.0% of Brown & Brown shares are held by institutional investors. 17.0% of Brown & Brown shares are held by company insiders. Comparatively, 0.6% of XChange TEC.INC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Brown & Brown and XChange TEC.INC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brown & Brown	1	5	7	0	2.46
XChange TEC.INC	0	0	0	0	0.00

Brown & Brown currently has a consensus price target of $116.67, indicating a potential upside of 5.69%. Given Brown & Brown’s stronger consensus rating and higher probable upside, equities analysts clearly believe Brown & Brown is more favorable than XChange TEC.INC.

Profitability

This table compares Brown & Brown and XChange TEC.INC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brown & Brown	20.68%	17.81%	6.69%
XChange TEC.INC	N/A	N/A	N/A

Risk & Volatility

Brown & Brown has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, XChange TEC.INC has a beta of -0.71, meaning that its share price is 171% less volatile than the S&P 500.

Earnings & Valuation

This table compares Brown & Brown and XChange TEC.INC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brown & Brown	$4.85 billion	6.52	$993.00 million	$3.59	30.75
XChange TEC.INC	$288.37 million	0.00	-$32.32 million	N/A	N/A

Brown & Brown has higher revenue and earnings than XChange TEC.INC.

Summary

Brown & Brown beats XChange TEC.INC on 12 of the 12 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 XChange TEC.INC

XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.