LNC vs. BRP: Which Stock Is the Better Value Option?

LNC

Investors with an interest in Insurance - Life Insurance stocks have likely encountered both Lincoln National (LNC - Free Report) and BRP Group . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Lincoln National has a Zacks Rank of #2 (Buy), while BRP Group has a Zacks Rank of #3 (Hold). 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 factor that value investors are interested in.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

LNC currently has a forward P/E ratio of 6.90, while BRP has a forward P/E of 35.59. We also note that LNC has a PEG ratio of 0.18. 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 0.81.

Another notable valuation metric for LNC is its P/B ratio of 0.62. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BRP has a P/B of 3.20.

Based on these metrics and many more, LNC holds a Value grade of B, while BRP has a Value grade of D.

LNC sticks out from BRP in both our Zacks Rank and Style Scores models, so value investors will likely feel that LNC is the better option right now.

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