MFC vs. BRP: Which Stock Is the Better Value Option?
Investors looking for stocks in the Insurance - Life Insurance sector might want to consider either Manulife Financial (MFC) or 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Manulife Financial has a Zacks Rank of #2 (Buy), while BRP Group has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that MFC likely has seen a stronger improvement to its earnings outlook than BRP has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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 6.30, while BRP has a forward P/E of 26.34. We also note that MFC has a PEG ratio of 0.63. 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 1.08.
Another notable valuation metric for MFC is its P/B ratio of 0.78. 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, BRP has a P/B of 2.52.
Based on these metrics and many more, MFC holds a Value grade of A, while BRP has a Value grade of D.
MFC sticks out from BRP in both our Zacks Rank and Style Scores models, so value investors will likely feel that MFC is the better option right now.
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Manulife Financial Corp (MFC) : Free Stock Analysis Report
BRP Group, Inc. (BRP) : Free Stock Analysis Report
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