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LNC vs. BRP: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Insurance - Life Insurance stocks have likely encountered both Lincoln National (LNC - Free Report) and BRP Group (BRP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Lincoln National and BRP Group are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that LNC likely has seen a stronger improvement to its earnings outlook than BRP has recently. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

LNC currently has a forward P/E ratio of 6.58, while BRP has a forward P/E of 50.30. We also note that LNC has a PEG ratio of 0.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BRP currently has a PEG ratio of 1.23.

Another notable valuation metric for LNC is its P/B ratio of 0.59. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BRP has a P/B of 4.78.

These are just a few of the metrics contributing to LNC's Value grade of A and BRP's Value grade of D.

LNC has seen stronger estimate revision activity and sports more attractive valuation metrics than BRP, so it seems like value investors will conclude that LNC is the superior option right now.


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Lincoln National Corporation (LNC) - free report >>

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