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ZURVY or PUK: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Insurance - Multi line sector might want to consider either Zurich Insurance Group Ltd. (ZURVY - Free Report) or Prudential (PUK - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 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.

Currently, Zurich Insurance Group Ltd. has a Zacks Rank of #2 (Buy), while Prudential has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ZURVY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

ZURVY currently has a forward P/E ratio of 11.74, while PUK has a forward P/E of 14.34. We also note that ZURVY has a PEG ratio of 1.55. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PUK currently has a PEG ratio of 1.59.

Another notable valuation metric for ZURVY is its P/B ratio of 2.56. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PUK has a P/B of 2.90.

Based on these metrics and many more, ZURVY holds a Value grade of B, while PUK has a Value grade of C.

ZURVY 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 ZURVY is likely the superior value option right now.


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