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SIGI or CCCS: Which Is the Better Value Stock Right Now?

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Investors interested in Insurance - Property and Casualty stocks are likely familiar with Selective Insurance (SIGI - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Selective Insurance has a Zacks Rank of #2 (Buy), while CCC Intelligent Solutions Holdings Inc. has a Zacks Rank of #3 (Hold). This means that SIGI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

SIGI currently has a forward P/E ratio of 16.76, while CCCS has a forward P/E of 29.10. We also note that SIGI has a PEG ratio of 0.91. 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. CCCS currently has a PEG ratio of 1.20.

Another notable valuation metric for SIGI is its P/B ratio of 2.63. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CCCS has a P/B of 2.85.

Based on these metrics and many more, SIGI holds a Value grade of A, while CCCS has a Value grade of D.

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

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Selective Insurance Group, Inc. (SIGI) - free report >>

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