Investors looking for stocks in the Insurance - Property and Casualty sector might want to consider either Skyward Specialty Insurance (SKWD) or Progressive (PGR). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.

Both Skyward Specialty Insurance and Progressive have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

SKWD currently has a forward P/E ratio of 14.39, while PGR has a forward P/E of 18.65. We also note that SKWD has a PEG ratio of 0.80. 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. PGR currently has a PEG ratio of 1.74.

Another notable valuation metric for SKWD is its P/B ratio of 2.50. 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, PGR has a P/B of 6.44.

These metrics, and several others, help SKWD earn a Value grade of B, while PGR has been given a Value grade of C.

Both SKWD and PGR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SKWD is the superior value option right now.

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Skyward Specialty Insurance Group, Inc. (SKWD) : Free Stock Analysis Report

The Progressive Corporation (PGR) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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