Investors with an interest in Insurance - Multi line stocks have likely encountered both MGIC Investment (MTG Quick QuoteMTG - Free Report) and Mnchener RckversicherungsGesellschaft (MURGY Quick QuoteMURGY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

MGIC Investment has a Zacks Rank of #2 (Buy), while Mnchener RckversicherungsGesellschaft has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MTG is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MTG currently has a forward P/E ratio of 4.98, while MURGY has a forward P/E of 22.01. We also note that MTG has a PEG ratio of 1. 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. MURGY currently has a PEG ratio of 1.35.

Another notable valuation metric for MTG is its P/B ratio of 0.88. 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, MURGY has a P/B of 1.48.

These are just a few of the metrics contributing to MTG's Value grade of A and MURGY's Value grade of C.

MTG is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MTG is likely the superior value option right now.