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Kinsale Capital Group, Inc. (KNSL) - free report >>
Skyward Specialty Insurance Group, Inc. (SKWD) - free report >>
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Kinsale Capital Group, Inc. (KNSL) - free report >>
Skyward Specialty Insurance Group, Inc. (SKWD) - free report >>
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SKWD vs. KNSL: Which Stock Is the Better Value Option?
Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either Skyward Specialty Insurance (SKWD - Free Report) or Kinsale Capital Group, Inc. (KNSL - 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.
Skyward Specialty Insurance and Kinsale Capital Group, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SKWD 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 try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
SKWD currently has a forward P/E ratio of 14.07, while KNSL has a forward P/E of 26.90. We also note that SKWD has a PEG ratio of 0.78. 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. KNSL currently has a PEG ratio of 1.79.
Another notable valuation metric for SKWD is its P/B ratio of 2.29. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, KNSL has a P/B of 8.01.
These are just a few of the metrics contributing to SKWD's Value grade of A and KNSL's Value grade of D.
SKWD has seen stronger estimate revision activity and sports more attractive valuation metrics than KNSL, so it seems like value investors will conclude that SKWD is the superior option right now.