Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Skyward Specialty Insurance (SKWD) and Kinsale Capital Group, Inc. (KNSL). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Skyward Specialty Insurance has a Zacks Rank of #2 (Buy), while Kinsale Capital Group, Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SKWD has an improving earnings outlook. However, value investors will care about much more than just this.

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.

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 15.35, while KNSL has a forward P/E of 27.91. We also note that SKWD has a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KNSL currently has a PEG ratio of 1.86.

Another notable valuation metric for SKWD is its P/B ratio of 2.65. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, KNSL has a P/B of 7.57.

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

SKWD has seen stronger estimate revision activity and sports more attractive valuation metrics than KNSL, so it seems like value investors will conclude that SKWD is the superior option right now.

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

Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report

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

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