Investors with an interest in Insurance - Multi line stocks have likely encountered both Radian (RDN) and BB Seguridade Participacoes SA (BBSEY). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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, Radian has a Zacks Rank of #2 (Buy), while BB Seguridade Participacoes SA has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RDN has an improving earnings outlook. 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.

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.

RDN currently has a forward P/E ratio of 8.64, while BBSEY has a forward P/E of 8.71. We also note that RDN has a PEG ratio of 1.73. 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. BBSEY currently has a PEG ratio of 1.82.

Another notable valuation metric for RDN is its P/B ratio of 1.08. 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, BBSEY has a P/B of 6.24.

Based on these metrics and many more, RDN holds a Value grade of B, while BBSEY has a Value grade of C.

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

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Radian Group Inc. (RDN) : Free Stock Analysis Report

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