6 Insurance Companies Trading With Low Price-Sales Ratios

Prudential on the list

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Jul 02, 2020
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According to the GuruFocus All-In-One Screener, a Premium feature, the following insurance companies were trading with low price-sales ratios as of July 2.

Prudential

Shares of Prudential PLC (PUK) were trading around $30.56 with a price-sales ratio of 0.43 and a price-earnings ratio of 48.53.

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The insurance company, which operates in U.S. and Asia, has a $39.1 billion market cap. The stock has risen at an annualized rate of 11.95% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $18.12, suggesting it is overpriced by 68%, while the Peter Lynch earnings line gives the stock a fair price of $22.50.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.07% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management with 0.04%.

WR Berkley

On Thursday, WR Berkley Corp. (WRB) was trading around $57.03 per share with a price-sales ratio of 1.4 and a price-earnings ratio of 22.19.

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The insurance holding company has a market cap of $10.1 billion. The stock has risen at an annualized rate of 14.04% over the past 10 years.

The discounted cash flow calculator gives the stock a fair value of $35.53, suggesting it is overpriced by 60%, while the Peter Lynch earnings line gives the stock a fair price of $38.55.

With 3.51% of outstanding shares, First Eagle Investment (Trades, Portfolio) is the company's largest guru shareholder, followed by Renaissance Technologies with 0.26%.

Stewart Information

Stewart Information Services Corp. (STC) was trading around $31.51 on Thursday with a price-sales ratio of 0.38 and a price-earnings ratio of 8.27.

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The holding company has a market cap of $746 million. The stock has risen at an annualized rate of 15.55% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $40.77, suggesting it is trading with a margin of safety of 22.71%, while the Peter Lynch earnings line gives the stock a fair price of $38.40.

With 4.80% of outstanding shares, Renaissance Technologies is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 1.46% and HOTCHKIS & WILEY with 0.68%.

Radian Group

Radian Group Inc. (RDN) was trading around $14.92 with a price-sales ratio of 2.09 and a price-earnings ratio of 4.84.

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The provider of mortgage insurance and services has a market cap of $2.8 billion. The stock has climbed at an annualized rate of 8.12% over the past 10 years.

The discounted cash flow calculator gives the stock a fair value of $32.96, suggesting it is undervalued with a 54.73% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $46.20.

Some notable guru shareholders are Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 1.14% of outstanding shares and Jeremy Grantham (Trades, Portfolio) with 0.74%.

Primerica

Primerica Inc. (PRI) was trading around $113.16 per share with a price-sales ratio of 2.22 and a price-earnings ratio of 13.24.

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The provider of financial services has a market cap of $4.5 billion. The stock has risen at an annualized rate of 18.77% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $122.89, suggesting it is undervalued with a margin of safety of 7.92%, while the Peter Lynch fair value is $154.58.

The company's largest guru shareholder is Ron Baron (Trades, Portfolio) with 5.84% of outstanding shares, followed by Glenn Greenberg (Trades, Portfolio) with 3.66%.

CorVel

CorVel Corp. (CRVL) was trading around $71 with a price-sales ratio of 2.23.

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The company has a market cap of $1.2 billion. The stock has risen at an annualized rate of 15.60% over the past decade.

The Peter Lynch earnings line gives the stock a fair price of $38.1.

The company's largest guru shareholder is Simons’ Renaissance Technologies with 6.96% of outstanding shares, followed by Royce with 0.02%.

Disclosure: I do not own any stocks mentioned.

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