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RNR or CINF: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of RenaissanceRe (RNR - Free Report) and Cincinnati Financial (CINF - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, RenaissanceRe is sporting a Zacks Rank of #2 (Buy), while Cincinnati Financial has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that RNR is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
RNR currently has a forward P/E ratio of 5.95, while CINF has a forward P/E of 19.25. We also note that RNR has a PEG ratio of 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CINF currently has a PEG ratio of 2.72.
Another notable valuation metric for RNR is its P/B ratio of 1.26. 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, CINF has a P/B of 1.54.
These are just a few of the metrics contributing to RNR's Value grade of A and CINF's Value grade of C.
RNR has seen stronger estimate revision activity and sports more attractive valuation metrics than CINF, so it seems like value investors will conclude that RNR is the superior option right now.
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RNR or CINF: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of RenaissanceRe (RNR - Free Report) and Cincinnati Financial (CINF - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, RenaissanceRe is sporting a Zacks Rank of #2 (Buy), while Cincinnati Financial has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that RNR is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
RNR currently has a forward P/E ratio of 5.95, while CINF has a forward P/E of 19.25. We also note that RNR has a PEG ratio of 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CINF currently has a PEG ratio of 2.72.
Another notable valuation metric for RNR is its P/B ratio of 1.26. 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, CINF has a P/B of 1.54.
These are just a few of the metrics contributing to RNR's Value grade of A and CINF's Value grade of C.
RNR has seen stronger estimate revision activity and sports more attractive valuation metrics than CINF, so it seems like value investors will conclude that RNR is the superior option right now.