MFC or BRP: Which Is the Better Value Stock Right Now?
Investors with an interest in Insurance - Life Insurance stocks have likely encountered both Manulife Financial (MFC) and BRP Group (BRP). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Manulife Financial has a Zacks Rank of #2 (Buy), while BRP Group has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MFC has an improving earnings outlook. 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.
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.
MFC currently has a forward P/E ratio of 7.94, while BRP has a forward P/E of 20.36. We also note that MFC has a PEG ratio of 0.79. 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 0.85.
Another notable valuation metric for MFC is its P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BRP has a P/B of 2.48.
These are just a few of the metrics contributing to MFC's Value grade of A and BRP's Value grade of D.
MFC 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 MFC is likely the superior value option right now.
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Manulife Financial Corp (MFC) : Free Stock Analysis Report
BRP Group, Inc. (BRP) : Free Stock Analysis Report
