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LFC or BRP: Which Is the Better Value Stock Right Now?
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Investors with an interest in Insurance - Life Insurance stocks have likely encountered both China Life and BRP Group (BRP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
China Life and BRP Group are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LFC is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
LFC currently has a forward P/E ratio of 5.64, while BRP has a forward P/E of 48.18. We also note that LFC has a PEG ratio of 0.47. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BRP currently has a PEG ratio of 1.15.
Another notable valuation metric for LFC is its P/B ratio of 0.66. 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 4.52.
These metrics, and several others, help LFC earn a Value grade of A, while BRP has been given a Value grade of D.
LFC has seen stronger estimate revision activity and sports more attractive valuation metrics than BRP, so it seems like value investors will conclude that LFC is the superior option right now.
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LFC or BRP: Which Is the Better Value Stock Right Now?
Investors with an interest in Insurance - Life Insurance stocks have likely encountered both China Life and BRP Group (BRP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
China Life and BRP Group are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LFC is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
LFC currently has a forward P/E ratio of 5.64, while BRP has a forward P/E of 48.18. We also note that LFC has a PEG ratio of 0.47. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BRP currently has a PEG ratio of 1.15.
Another notable valuation metric for LFC is its P/B ratio of 0.66. 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 4.52.
These metrics, and several others, help LFC earn a Value grade of A, while BRP has been given a Value grade of D.
LFC has seen stronger estimate revision activity and sports more attractive valuation metrics than BRP, so it seems like value investors will conclude that LFC is the superior option right now.