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NMIH vs. CB: Which Stock Should Value Investors Buy Now?
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Investors interested in Insurance - Property and Casualty stocks are likely familiar with NMI Holdings (NMIH - Free Report) and Chubb (CB - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
NMI Holdings has a Zacks Rank of #2 (Buy), while Chubb has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NMIH is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
NMIH currently has a forward P/E ratio of 9.08, while CB has a forward P/E of 13.51. We also note that NMIH has a PEG ratio of 0.93. 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. CB currently has a PEG ratio of 5.98.
Another notable valuation metric for NMIH is its P/B ratio of 1.59. 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, CB has a P/B of 1.79.
Based on these metrics and many more, NMIH holds a Value grade of B, while CB has a Value grade of C.
NMIH stands above CB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NMIH is the superior value option right now.
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NMIH vs. CB: Which Stock Should Value Investors Buy Now?
Investors interested in Insurance - Property and Casualty stocks are likely familiar with NMI Holdings (NMIH - Free Report) and Chubb (CB - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
NMI Holdings has a Zacks Rank of #2 (Buy), while Chubb has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NMIH is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
NMIH currently has a forward P/E ratio of 9.08, while CB has a forward P/E of 13.51. We also note that NMIH has a PEG ratio of 0.93. 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. CB currently has a PEG ratio of 5.98.
Another notable valuation metric for NMIH is its P/B ratio of 1.59. 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, CB has a P/B of 1.79.
Based on these metrics and many more, NMIH holds a Value grade of B, while CB has a Value grade of C.
NMIH stands above CB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NMIH is the superior value option right now.