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The Progressive Corporation (PGR) - free report >>
Skyward Specialty Insurance Group, Inc. (SKWD) - free report >>
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The Progressive Corporation (PGR) - free report >>
Skyward Specialty Insurance Group, Inc. (SKWD) - free report >>
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SKWD vs. PGR: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either Skyward Specialty Insurance (SKWD - Free Report) or Progressive (PGR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Skyward Specialty Insurance has a Zacks Rank of #1 (Strong Buy), while Progressive has a Zacks Rank of #2 (Buy) right now. This means that SKWD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
SKWD currently has a forward P/E ratio of 13.44, while PGR has a forward P/E of 19.79. We also note that SKWD has a PEG ratio of 0.75. 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. PGR currently has a PEG ratio of 0.81.
Another notable valuation metric for SKWD is its P/B ratio of 2.20. 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, PGR has a P/B of 6.05.
Based on these metrics and many more, SKWD holds a Value grade of B, while PGR has a Value grade of C.
SKWD has seen stronger estimate revision activity and sports more attractive valuation metrics than PGR, so it seems like value investors will conclude that SKWD is the superior option right now.