Back to top

Image: Bigstock

WRB or KNSL: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either W.R. Berkley (WRB - 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.

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.

W.R. Berkley and Kinsale Capital Group, Inc. 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 WRB 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 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 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.

WRB currently has a forward P/E ratio of 14.29, while KNSL has a forward P/E of 31.62. We also note that WRB has a PEG ratio of 1.06. 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. KNSL currently has a PEG ratio of 2.11.

Another notable valuation metric for WRB is its P/B ratio of 2.81. 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, KNSL has a P/B of 8.96.

These are just a few of the metrics contributing to WRB's Value grade of B and KNSL's Value grade of D.

WRB sticks out from KNSL in both our Zacks Rank and Style Scores models, so value investors will likely feel that WRB is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


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

Kinsale Capital Group, Inc. (KNSL) - free report >>

Published in