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ALL vs. SIGI: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both Allstate (ALL - Free Report) and Selective Insurance (SIGI - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Allstate and Selective Insurance are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ALL has an improving earnings outlook. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ALL currently has a forward P/E ratio of 8.61, while SIGI has a forward P/E of 14.73. We also note that ALL has a PEG ratio of 1.15. 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. SIGI currently has a PEG ratio of 6.64.
Another notable valuation metric for ALL is its P/B ratio of 1.35. 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, SIGI has a P/B of 1.43.
These metrics, and several others, help ALL earn a Value grade of A, while SIGI has been given a Value grade of C.
ALL stands above SIGI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ALL is the superior value option right now.
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ALL vs. SIGI: Which Stock Should Value Investors Buy Now?
Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both Allstate (ALL - Free Report) and Selective Insurance (SIGI - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Allstate and Selective Insurance are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ALL has an improving earnings outlook. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ALL currently has a forward P/E ratio of 8.61, while SIGI has a forward P/E of 14.73. We also note that ALL has a PEG ratio of 1.15. 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. SIGI currently has a PEG ratio of 6.64.
Another notable valuation metric for ALL is its P/B ratio of 1.35. 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, SIGI has a P/B of 1.43.
These metrics, and several others, help ALL earn a Value grade of A, while SIGI has been given a Value grade of C.
ALL stands above SIGI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ALL is the superior value option right now.