Send me real-time posts from this site at my email
Zacks

CB vs. CCCS: Which Stock Is the Better Value Option?

Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both Chubb (CB) and CCC Intelligent Solutions Holdings Inc. (CCCS). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 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.

Chubb has a Zacks Rank of #2 (Buy), while CCC Intelligent Solutions Holdings Inc. has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CB has an improving earnings outlook. But this is just one piece of the puzzle 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.

CB currently has a forward P/E ratio of 11.88, while CCCS has a forward P/E of 31.32. We also note that CB has a PEG ratio of 1.19. 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. CCCS currently has a PEG ratio of 1.29.

Another notable valuation metric for CB is its P/B ratio of 1.51. 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, CCCS has a P/B of 2.90.

These are just a few of the metrics contributing to CB's Value grade of A and CCCS's Value grade of F.

CB stands above CCCS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CB is the superior value option right now.


Special Report: The Top 5 IPOs for Your Portfolio

Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.

>>See Zacks’ Hottest IPOs Now

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Chubb Limited (CB): Free Stock Analysis Report
 
CCC Intelligent Solutions Holdings Inc. (CCCS): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue