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HIG vs. BBSEY: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Insurance - Multi line sector might want to consider either The Hartford (HIG - Free Report) or BB Seguridade Participacoes SA (BBSEY - Free Report) . 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.

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 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.

The Hartford has a Zacks Rank of #2 (Buy), while BB Seguridade Participacoes SA has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that HIG likely has seen a stronger improvement to its earnings outlook than BBSEY has recently. However, value investors will care about much more than just this.

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 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.

HIG currently has a forward P/E ratio of 10.36, while BBSEY has a forward P/E of 49.46. We also note that HIG has a PEG ratio of 1.48. 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. BBSEY currently has a PEG ratio of 3.10.

Another notable valuation metric for HIG is its P/B ratio of 1.39. 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, BBSEY has a P/B of 8.30.

These are just a few of the metrics contributing to HIG's Value grade of A and BBSEY's Value grade of C.

HIG 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 HIG is likely the superior value option right now.


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The Hartford Financial Services Group, Inc. (HIG) - free report >>

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