Core Viewpoint - Investors in the Insurance - Property and Casualty sector should consider Essent Group (ESNT) and Berkshire Hathaway B (BRK.B) for potential value opportunities [1] Group 1: Zacks Rank and Value Scores - Essent Group has a Zacks Rank of 2 (Buy), while Berkshire Hathaway B has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for ESNT [3] - The Zacks Rank strategy focuses on companies with positive earnings estimate revisions, which is a key factor for value investors [2] Group 2: Valuation Metrics - Essent Group has a forward P/E ratio of 9.04, significantly lower than Berkshire Hathaway B's forward P/E of 24.37 [5] - The PEG ratio for Essent Group is 2.78, compared to Berkshire Hathaway B's PEG ratio of 3.48, suggesting better growth relative to its valuation for ESNT [5] - Essent Group's P/B ratio is 1.15, while Berkshire Hathaway B's P/B ratio is 1.59, indicating that ESNT is more undervalued based on book value [6] Group 3: Overall Assessment - Essent Group has demonstrated stronger estimate revision activity and more attractive valuation metrics than Berkshire Hathaway B, making it the preferred choice for value investors [7]
ESNT vs. BRK.B: Which Stock Is the Better Value Option?