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LNC or BRP: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Insurance - Life Insurance sector might want to consider either Lincoln National (LNC) or BRP Group (BRP). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Lincoln National is sporting a Zacks Rank of #2 (Buy), while BRP Group has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that LNC likely has seen a stronger improvement to its earnings outlook than BRP 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.

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.

LNC currently has a forward P/E ratio of 6.63, while BRP has a forward P/E of 33.64. We also note that LNC has a PEG ratio of 0.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BRP currently has a PEG ratio of 0.76.

Another notable valuation metric for LNC is its P/B ratio of 0.60. 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, BRP has a P/B of 3.02.

These metrics, and several others, help LNC earn a Value grade of B, while BRP has been given a Value grade of D.

LNC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that LNC is likely the superior value option right now.


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Lincoln National Corporation (LNC) : Free Stock Analysis Report
 
BRP Group, Inc. (BRP) : Free Stock Analysis Report
 
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