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CB or THG: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Chubb (CB - Free Report) and Hanover Insurance Group (THG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Chubb has a Zacks Rank of #2 (Buy), while Hanover Insurance Group has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that CB likely has seen a stronger improvement to its earnings outlook than THG has recently. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CB currently has a forward P/E ratio of 11.38, while THG has a forward P/E of 127.13. We also note that CB has a PEG ratio of 1.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. THG currently has a PEG ratio of 3.46.
Another notable valuation metric for CB is its P/B ratio of 1.55. 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, THG has a P/B of 1.96.
These are just a few of the metrics contributing to CB's Value grade of A and THG's Value grade of D.
CB sticks out from THG in both our Zacks Rank and Style Scores models, so value investors will likely feel that CB is the better option right now.
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CB or THG: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Chubb (CB - Free Report) and Hanover Insurance Group (THG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Chubb has a Zacks Rank of #2 (Buy), while Hanover Insurance Group has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that CB likely has seen a stronger improvement to its earnings outlook than THG has recently. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CB currently has a forward P/E ratio of 11.38, while THG has a forward P/E of 127.13. We also note that CB has a PEG ratio of 1.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. THG currently has a PEG ratio of 3.46.
Another notable valuation metric for CB is its P/B ratio of 1.55. 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, THG has a P/B of 1.96.
These are just a few of the metrics contributing to CB's Value grade of A and THG's Value grade of D.
CB sticks out from THG in both our Zacks Rank and Style Scores models, so value investors will likely feel that CB is the better option right now.