We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ACT vs. RDN: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Insurance - Multi line stocks are likely familiar with Enact Holdings, Inc. (ACT - Free Report) and Radian (RDN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Enact Holdings, Inc. is sporting a Zacks Rank of #1 (Strong Buy), while Radian has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ACT likely has seen a stronger improvement to its earnings outlook than RDN has recently. But this is only part of the picture for value investors.
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 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.
ACT currently has a forward P/E ratio of 7.90, while RDN has a forward P/E of 10.25. We also note that ACT has a PEG ratio of 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RDN currently has a PEG ratio of 2.05.
Another notable valuation metric for ACT is its P/B ratio of 1.08. 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, RDN has a P/B of 1.17.
Based on these metrics and many more, ACT holds a Value grade of B, while RDN has a Value grade of C.
ACT sticks out from RDN in both our Zacks Rank and Style Scores models, so value investors will likely feel that ACT is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ACT vs. RDN: Which Stock Is the Better Value Option?
Investors interested in Insurance - Multi line stocks are likely familiar with Enact Holdings, Inc. (ACT - Free Report) and Radian (RDN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Enact Holdings, Inc. is sporting a Zacks Rank of #1 (Strong Buy), while Radian has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ACT likely has seen a stronger improvement to its earnings outlook than RDN has recently. But this is only part of the picture for value investors.
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 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.
ACT currently has a forward P/E ratio of 7.90, while RDN has a forward P/E of 10.25. We also note that ACT has a PEG ratio of 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RDN currently has a PEG ratio of 2.05.
Another notable valuation metric for ACT is its P/B ratio of 1.08. 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, RDN has a P/B of 1.17.
Based on these metrics and many more, ACT holds a Value grade of B, while RDN has a Value grade of C.
ACT sticks out from RDN in both our Zacks Rank and Style Scores models, so value investors will likely feel that ACT is the better option right now.