Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Allstate (ALL) and Kinsale Capital Group, Inc. (KNSL). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, Allstate has a Zacks Rank of #2 (Buy), while Kinsale Capital Group, Inc. 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 ALL has an improving earnings outlook. But this is only part of the picture 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.
ALL currently has a forward P/E ratio of 12.30, while KNSL has a forward P/E of 29.97. We also note that ALL has a PEG ratio of 1.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KNSL currently has a PEG ratio of 2.
Another notable valuation metric for ALL is its P/B ratio of 2.77. 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, KNSL has a P/B of 7.55.
Based on these metrics and many more, ALL holds a Value grade of A, while KNSL has a Value grade of D.
ALL stands above KNSL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ALL is the superior value option right now.
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The Allstate Corporation (ALL) : Free Stock Analysis Report
Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
