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NNGRY or BRP: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Insurance - Life Insurance sector might want to consider either NN Group NV Unsponsored ADR (NNGRY - Free Report) or BRP Group . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

NN Group NV Unsponsored ADR and BRP Group are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NNGRY 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 also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

NNGRY currently has a forward P/E ratio of 11.32, while BRP has a forward P/E of 21.98. We also note that NNGRY has a PEG ratio of 0.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BRP currently has a PEG ratio of 0.79.

Another notable valuation metric for NNGRY is its P/B ratio of 0.65. 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, BRP has a P/B of 2.77.

Based on these metrics and many more, NNGRY holds a Value grade of A, while BRP has a Value grade of D.

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


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