Critical Comparison: The Baldwin Insurance Group (NASDAQ:BRP) and AIX (NASDAQ:AIFU)

The Baldwin Insurance Group (NASDAQ:BRP) and AIX (NASDAQ:AIFU) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Risk and Volatility

The Baldwin Insurance Group has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, AIX has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500.

Institutional and Insider Ownership

70.4% of The Baldwin Insurance Group shares are owned by institutional investors. Comparatively, 26.7% of AIX shares are owned by institutional investors. 22.7% of The Baldwin Insurance Group shares are owned by company insiders. Comparatively, 25.6% of AIX shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares The Baldwin Insurance Group and AIX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Baldwin Insurance Group	-4.29%	9.21%	2.82%
AIX	N/A	N/A	N/A

Earnings and Valuation

This table compares The Baldwin Insurance Group and AIX”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Baldwin Insurance Group	$1.27 billion	3.73	-$90.14 million	($0.92)	-43.75
AIX	$450.48 million	0.04	$39.50 million	$0.73	0.46

AIX has lower revenue, but higher earnings than The Baldwin Insurance Group. The Baldwin Insurance Group is trading at a lower price-to-earnings ratio than AIX, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for The Baldwin Insurance Group and AIX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Baldwin Insurance Group	0	1	4	0	2.80
AIX	0	0	0	0	0.00

The Baldwin Insurance Group currently has a consensus price target of $34.80, indicating a potential downside of 13.54%. Given The Baldwin Insurance Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe The Baldwin Insurance Group is more favorable than AIX.

Summary

The Baldwin Insurance Group beats AIX on 9 of the 14 factors compared between the two stocks.

About The Baldwin Insurance Group

BRP Group, Inc. operates as an independent insurance distribution firm that delivers insurance and risk management solutions in the United States. It operates through three segments: Insurance Advisory Solutions; Underwriting, Capacity & Technology Solutions; and Mainstreet Insurance Solutions. The Insurance Advisory Solutions segment provides commercial risk management, employee benefits, and private risk management solutions for businesses and high-net-worth individuals, as well as their families. The Underwriting, Capacity & Technology Solutions segment offers Future platform, that manufactures technology-enabled insurance products suite comprises personal, commercial, and specialty lines; specialty wholesale broker business that delivers professionals, individuals, and niche industry businesses; and reinsurance brokerage services. The Mainstreet Insurance Solutions segment provides personal insurance, commercial insurance, and life and health solutions to individuals and businesses in communities. BRP Group, Inc. was founded in 2011 and is headquartered in Tampa, Florida.

About AIX

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.