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Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either Progressive (PGR) or Kinsale Capital Group, Inc. (KNSL). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Progressive and Kinsale Capital Group, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that PGR likely has seen a stronger improvement to its earnings outlook than KNSL has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PGR currently has a forward P/E ratio of 17.78, while KNSL has a forward P/E of 26.27. We also note that PGR has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KNSL currently has a PEG ratio of 1.75.
Another notable valuation metric for PGR is its P/B ratio of 5.88. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, KNSL has a P/B of 7.74.
These are just a few of the metrics contributing to PGR's Value grade of B and KNSL's Value grade of D.
PGR sticks out from KNSL in both our Zacks Rank and Style Scores models, so value investors will likely feel that PGR is the better option right now.
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The Progressive Corporation (PGR) : Free Stock Analysis Report
Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report