Fifth ThirdBrown & Brown

Fifth Third vs Brown & Brown

This page compares Fifth Third Bancorp and Brown & Brown Inc., examining business models, financial performance, and market context to illuminate their similarities and differences. It presents neutra...

Why It's Moving

Fifth Third

Fifth Third Bancorp surges to 52-week high amid dividend boost and rate cut signals.

  • Declared $0.40 quarterly dividend per share, payable January 2025, underscoring reliable income amid sector yield hunts.[2][4]
  • Slashed prime lending rate to 6.75%, aligning with Fed signals and potentially juicing demand for mortgages and business loans.[3]
  • Analysts hold 'Moderate Buy' rating with forecasted 2025 EPS of $3.68, bolstering confidence as shares climb steadily.[1]
Sentiment:
πŸƒBullish

Which Baskets Do They Appear In?

Community Banking Catalyst

Community Banking Catalyst

This carefully selected group of stocks features regional and community banks positioned to benefit from the FDIC's proposed simplification of the Community Reinvestment Act. Our professional analysts identified these financial institutions as potentially gaining from reduced regulatory burdens, which could boost lending capacity and shareholder value.

Published: July 14, 2025

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Banks

Banks

These carefully selected banking stocks represent the financial institutions that keep the global economy running. Our professional analysts have handpicked these companies for their role in the digital transformation of financial services and their potential for steady returns.

Published: May 28, 2025

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Investment Analysis

Pros

  • Fifth Third Bancorp showed accelerating net interest income growth and improved efficiency in Q2 2025, with net interest income rising to $1.50 billion and net interest margin expanding to 3.12%.
  • The bank is successfully expanding its consumer household base with 2% year-over-year growth, including 6% growth in the Southeast, supported by geographic expansion and digital transformation efforts.
  • Fifth Third maintains a robust adjusted return on tangible common equity of 18.0%, and solid dividend history with a 51-year dividend streak, reflecting strong capital management.

Considerations

  • The stock price declined by approximately 9.32% over the past year, indicating some market volatility and investor concern.
  • Liquidity concerns exist with a current ratio below 1 (0.81), suggesting current liabilities exceed current assets, which may pose short-term financial risks.
  • The bank has a notable debt-to-equity ratio of 0.76, implying reliance on debt financing that could be challenging if interest rates rise further.

Pros

  • Brown & Brown maintains a strong presence in the insurance brokerage sector with consistent growth in revenues driven by acquisitions and organic expansion.
  • The company benefits from a diversified portfolio of insurance products and services across various industries and geographies, reducing sector-specific risks.
  • Brown & Brown’s effective cost management and operational efficiency support solid profitability margins and cash flow generation.

Considerations

  • The company faces cyclicality risk inherent in the insurance brokerage industry, which can affect earnings during economic downturns or adverse claims cycles.
  • Integration risks from recent acquisitions may impact short-term financial performance and operational focus.
  • Exposure to regulatory changes in insurance and financial services sectors could necessitate increased compliance costs and operational adjustments.

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