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Steadfast Group vs AUB Group shares: Which insurance broker offers better value?
Choosing between Steadfast Group Ltd (ASX: SDF) and AUB Group Ltd (ASX: AUB) can be a tough ask for investors focused on Australia's bustling insurance broking industry. Both are heavyweights with strong broker networks, proud dividend histories, and a growing international presence. But when it comes to value for your investment dollar, how do these two stack up? Here's my take, with a focus on the numbers that really set them apart.
The case for Steadfast
Steadfast is the largest general insurance broker network and group of underwriting agencies in Australia and New Zealand, with a footprint spanning more than 430 brokers and around 2,000 offices according to its most recent public description. The company's reach extends to Singapore, the UK, Germany, and more recently, the United States – thanks to recent acquisitions and the rollout of the ISU Steadfast brand.
Standout fundamentals for Steadfast Group:
- Market capitalisation sits at $6.38 billion, making it the biggest listed player in its patch.
- P/E ratio of 23.58, which is relatively moderate for the sector.
- Dividend yield of 3.66%, fully franked.
- Year to date return of 12.49%, showing positive momentum in a tough market.
Steadfast also offers 100% franking on all dividends, and its payout has steadily increased over recent years based on the data provided. The group acts not just as a broker but a consolidator, directly owning stakes in a host of its network businesses.
The case for AUB
AUB Group is another major insurance services player, boasting a significant broker network across Australia, New Zealand, the US, the UK, and Europe. According to its most recent profile, the AUB network covers more than 570 locations and writes a substantial amount of gross written premium. Like Steadfast, AUB holds equity stakes in partner brokerages and various underwriting agencies.
Key fundamentals for AUB:
- Market cap of $3.63 billion, about half the size of Steadfast.
- P/E ratio of 36.74 – noticeably higher than Steadfast's.
- 3.41% fully franked dividend yield.
- Year to date return of -3.51%, marking a negative trend so far this year.
AUB also boasts 100% franking and a long, reliable record of dividend payments, with the most recent full-year payout reaching $0.98 per share.
Valuation comparison
Here's how these two insurance brokers shake out on the key numbers:
| Metric | Steadfast Group | AUB Group |
|---|---|---|
| Market Cap | $6.38 billion | $3.63 billion |
| P/E Ratio | 23.58 | 36.74 |
| EPS | 0.243 | 0.782 |
| Dividend Yield | 3.66% (100% franked) | 3.41% (100% franked) |
| Dividend per share | $0.21 | $0.98 |
| YTD Return | 12.5% | -3.5% |
A few things stand out: Steadfast trades at a significantly lower P/E ratio than AUB. Both companies' dividends are fully franked, though AUB pays out a higher absolute amount per share, likely due to its higher share price. The dividend yields are similar, but Steadfast edges slightly higher.
Note: AUB Group's reported P/E ratio (36.74) and EPS (0.782) suggest a price much higher than the current trading level. Steadfast's P/E and EPS also don't exactly align. The disparity could be due to differences in the way the earnings figure is calculated for each ratio (for example, normalised or forward earnings).
Recent share price performance
Comparing recent share price activity up to 24 September 2026:
- Steadfast Group closed at $5.74, up 12.5% for the year to date, with steady, gentle gains through September and limited volatility.
- AUB Group finished at $27.81, down 3.5% YTD, and experienced more price swings, including a notable -3.24% drop on the last trading day.
Which is the better buy?
If I'm focused on value – especially relative to fundamentals and recent performance – my pick would be Steadfast. The company is larger, has positive momentum (up 12.5% YTD), and trades on a much lower P/E ratio than AUB Group. While AUB pays out a larger absolute dividend per share, Steadfast actually offers a higher yield based on the current share price, and both are 100% franked.
I like that Steadfast is not only maintaining but steadily increasing its dividend, and its international expansion appears to be gaining traction. On the flip side, AUB is a high-quality business but, at the time of writing, seems to be priced at a premium and has lagged on recent performance. Unless you have a strong reason to pay up for AUB's earnings growth or international footprint, I'd lean towards Steadfast as offering better bang for your investment buck right now.
