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EG or ZURVY: 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 Everest Group (EG - Free Report) or Zurich Insurance Group Ltd. (ZURVY - Free Report) . 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.

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.

Right now, Everest Group is sporting a Zacks Rank of #2 (Buy), while Zurich Insurance Group Ltd. has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EG is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

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.

EG currently has a forward P/E ratio of 7.98, while ZURVY has a forward P/E of 13.54. We also note that EG has a PEG ratio of 0.22. 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. ZURVY currently has a PEG ratio of 6.24.

Another notable valuation metric for EG is its P/B ratio of 1.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZURVY has a P/B of 2.84.

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

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


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Zurich Insurance Group Ltd. (ZURVY) - free report >>

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