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NMIH or CB: Which Is the Better Value Stock Right Now?
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Investors interested in Insurance - Property and Casualty stocks are likely familiar with NMI Holdings (NMIH - Free Report) and Chubb (CB - 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 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.
NMI Holdings has a Zacks Rank of #2 (Buy), while Chubb has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NMIH is likely seeing its earnings outlook improve to a greater extent. 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.
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.
NMIH currently has a forward P/E ratio of 8.48, while CB has a forward P/E of 12.83. We also note that NMIH has a PEG ratio of 0.90. 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. CB currently has a PEG ratio of 5.35.
Another notable valuation metric for NMIH is its P/B ratio of 1.47. 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, CB has a P/B of 1.70.
These are just a few of the metrics contributing to NMIH's Value grade of B and CB's Value grade of C.
NMIH stands above CB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NMIH is the superior value option right now.
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NMIH or CB: Which Is the Better Value Stock Right Now?
Investors interested in Insurance - Property and Casualty stocks are likely familiar with NMI Holdings (NMIH - Free Report) and Chubb (CB - 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 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.
NMI Holdings has a Zacks Rank of #2 (Buy), while Chubb has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NMIH is likely seeing its earnings outlook improve to a greater extent. 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.
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.
NMIH currently has a forward P/E ratio of 8.48, while CB has a forward P/E of 12.83. We also note that NMIH has a PEG ratio of 0.90. 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. CB currently has a PEG ratio of 5.35.
Another notable valuation metric for NMIH is its P/B ratio of 1.47. 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, CB has a P/B of 1.70.
These are just a few of the metrics contributing to NMIH's Value grade of B and CB's Value grade of C.
NMIH stands above CB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NMIH is the superior value option right now.