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EG vs. ZURVY: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Insurance - Multi line sector have probably already heard of Everest Group (EG - Free Report) and Zurich Insurance Group Ltd. (ZURVY - 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Everest Group has a Zacks Rank of #2 (Buy), while Zurich Insurance Group Ltd. has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that EG likely has seen a stronger improvement to its earnings outlook than ZURVY has recently. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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 7.24, while ZURVY has a forward P/E of 13.74. We also note that EG has a PEG ratio of 0.21. 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. ZURVY currently has a PEG ratio of 6.33.

Another notable valuation metric for EG is its P/B ratio of 1.48. 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, ZURVY has a P/B of 2.88.

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

EG 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 EG is likely the superior value option right now.


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

Everest Group, Ltd. (EG) - free report >>

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