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VOYA vs. BWIN: Which Stock Is the Better Value Option?

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Investors with an interest in Insurance - Life Insurance stocks have likely encountered both Voya Financial (VOYA - Free Report) and The Baldwin Insurance Group (BWIN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 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.

Voya Financial has a Zacks Rank of #2 (Buy), while The Baldwin Insurance Group has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that VOYA likely has seen a stronger improvement to its earnings outlook than BWIN 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 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.

VOYA currently has a forward P/E ratio of 8.76, while BWIN has a forward P/E of 19.41. We also note that VOYA has a PEG ratio of 0.62. 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. BWIN currently has a PEG ratio of 1.04.

Another notable valuation metric for VOYA is its P/B ratio of 1.15. 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, BWIN has a P/B of 3.66.

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

VOYA has seen stronger estimate revision activity and sports more attractive valuation metrics than BWIN, so it seems like value investors will conclude that VOYA is the superior option right now.


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Voya Financial, Inc. (VOYA) - free report >>

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