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

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Investors interested in Insurance - Property and Casualty stocks are likely familiar with W.R. Berkley (WRB - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Currently, W.R. Berkley has a Zacks Rank of #2 (Buy), while Kinsale Capital Group, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that WRB likely has seen a stronger improvement to its earnings outlook than KNSL has recently. 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

WRB currently has a forward P/E ratio of 13.74, while KNSL has a forward P/E of 29.37. We also note that WRB has a PEG ratio of 1.02. 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 1.96.

Another notable valuation metric for WRB is its P/B ratio of 2.69. 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 8.28.

Based on these metrics and many more, WRB holds a Value grade of A, while KNSL has a Value grade of D.

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


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W.R. Berkley Corporation (WRB) - free report >>

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