LNC or BRP: Which Is the Better Value Stock Right Now?
Investors with an interest in Insurance - Life Insurance stocks have likely encountered both Lincoln National (LNC) and BRP Group (BRP). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Lincoln National has a Zacks Rank of #2 (Buy), while BRP Group 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 LNC is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
LNC currently has a forward P/E ratio of 6.60, while BRP has a forward P/E of 36.11. We also note that LNC has a PEG ratio of 0.17. 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. BRP currently has a PEG ratio of 0.82.
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 3.24.
These are just a few of the metrics contributing to LNC's Value grade of B and BRP's Value grade of D.
LNC sticks out from BRP in both our Zacks Rank and Style Scores models, so value investors will likely feel that LNC is the better 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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