Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both Selective Insurance (SIGI - Free Report) and CCC Intelligent Solutions Holdings Inc. (CCCS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.

Selective Insurance has a Zacks Rank of #2 (Buy), while CCC Intelligent Solutions Holdings Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SIGI likely has seen a stronger improvement to its earnings outlook than CCCS has recently. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

SIGI currently has a forward P/E ratio of 14.49, while CCCS has a forward P/E of 27.40. We also note that SIGI has a PEG ratio of 0.77. 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. CCCS currently has a PEG ratio of 1.13.

Another notable valuation metric for SIGI is its P/B ratio of 2.47. 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, CCCS has a P/B of 2.64.

These metrics, and several others, help SIGI earn a Value grade of A, while CCCS has been given a Value grade of D.

SIGI sticks out from CCCS in both our Zacks Rank and Style Scores models, so value investors will likely feel that SIGI is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


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

CCC Intelligent Solutions Holdings Inc. (CCCS) - free report >>

Published in