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CNA vs. BRK.B: Which Stock Is the Better Value Option?
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Investors interested in Insurance - Property and Casualty stocks are likely familiar with CNA Financial (CNA - Free Report) and Berkshire Hathaway B (BRK.B - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
CNA Financial and Berkshire Hathaway B are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CNA is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
CNA currently has a forward P/E ratio of 9.53, while BRK.B has a forward P/E of 23.14. We also note that CNA has a PEG ratio of 2.84. 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. BRK.B currently has a PEG ratio of 3.31.
Another notable valuation metric for CNA is its P/B ratio of 1.33. 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, BRK.B has a P/B of 1.62.
Based on these metrics and many more, CNA holds a Value grade of A, while BRK.B has a Value grade of C.
CNA sticks out from BRK.B in both our Zacks Rank and Style Scores models, so value investors will likely feel that CNA is the better option right now.
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CNA vs. BRK.B: Which Stock Is the Better Value Option?
Investors interested in Insurance - Property and Casualty stocks are likely familiar with CNA Financial (CNA - Free Report) and Berkshire Hathaway B (BRK.B - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
CNA Financial and Berkshire Hathaway B are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CNA is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
CNA currently has a forward P/E ratio of 9.53, while BRK.B has a forward P/E of 23.14. We also note that CNA has a PEG ratio of 2.84. 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. BRK.B currently has a PEG ratio of 3.31.
Another notable valuation metric for CNA is its P/B ratio of 1.33. 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, BRK.B has a P/B of 1.62.
Based on these metrics and many more, CNA holds a Value grade of A, while BRK.B has a Value grade of C.
CNA sticks out from BRK.B in both our Zacks Rank and Style Scores models, so value investors will likely feel that CNA is the better option right now.