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AIZ vs. OSCR: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Insurance - Multi line sector might want to consider either Assurant (AIZ - Free Report) or Oscar Health, Inc. (OSCR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Assurant has a Zacks Rank of #2 (Buy), while Oscar Health, Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AIZ 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 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.

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.

AIZ currently has a forward P/E ratio of 11.22, while OSCR has a forward P/E of 1,365. We also note that AIZ has a PEG ratio of 1.57. 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. OSCR currently has a PEG ratio of 36.05.

Another notable valuation metric for AIZ is its P/B ratio of 1.93. 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, OSCR has a P/B of 3.79.

These metrics, and several others, help AIZ earn a Value grade of A, while OSCR has been given a Value grade of C.

AIZ sticks out from OSCR in both our Zacks Rank and Style Scores models, so value investors will likely feel that AIZ is the better option right now.


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Assurant, Inc. (AIZ) - free report >>

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