Back to top

Image: Bigstock

PGR vs. KNSL: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in Insurance - Property and Casualty stocks are likely familiar with Progressive (PGR - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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, Progressive is sporting a Zacks Rank of #2 (Buy), while Kinsale Capital Group, Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PGR is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

PGR currently has a forward P/E ratio of 18.15, while KNSL has a forward P/E of 26.84. We also note that PGR has a PEG ratio of 0.66. 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. KNSL currently has a PEG ratio of 1.79.

Another notable valuation metric for PGR is its P/B ratio of 6. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, KNSL has a P/B of 7.91.

These metrics, and several others, help PGR earn a Value grade of B, while KNSL has been given a Value grade of D.

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


See More Zacks Research for These Tickers


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


The Progressive Corporation (PGR) - free report >>

Kinsale Capital Group, Inc. (KNSL) - free report >>

Published in