CB vs. CCCS: Which Stock Is the Better Value Option?

CB CCCS

Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both Chubb (CB - Free Report) and CCC Intelligent Solutions Holdings Inc. (CCCS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Chubb has a Zacks Rank of #2 (Buy), while CCC Intelligent Solutions Holdings Inc. has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CB has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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.

CB currently has a forward P/E ratio of 11.88, while CCCS has a forward P/E of 31.32. We also note that CB has a PEG ratio of 1.19. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CCCS currently has a PEG ratio of 1.29.

Another notable valuation metric for CB is its P/B ratio of 1.51. 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, CCCS has a P/B of 2.90.

These are just a few of the metrics contributing to CB's Value grade of A and CCCS's Value grade of F.

CB stands above CCCS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CB is the superior value option right now.

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