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LNC or BRP: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Insurance - Life Insurance sector have probably already heard of Lincoln National (LNC - Free Report) and BRP Group . 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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). This means that LNC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

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 6.54, while BRP has a forward P/E of 44.85. We also note that LNC has a PEG ratio of 0.16. 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. BRP currently has a PEG ratio of 1.10.

Another notable valuation metric for LNC is its P/B ratio of 0.59. 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, BRP has a P/B of 4.26.

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

LNC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that LNC is likely the superior value option right now.


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