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NNGRY vs. BWIN: Which Stock Should Value Investors Buy Now?
Investors interested in Insurance - Life Insurance stocks are likely familiar with NN Group NV Unsponsored ADR (NNGRY - Free Report) and The Baldwin Insurance Group (BWIN - 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 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.
Right now, NN Group NV Unsponsored ADR is sporting a Zacks Rank of #2 (Buy), while The Baldwin Insurance Group has a Zacks Rank of #3 (Hold). This means that NNGRY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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.
NNGRY currently has a forward P/E ratio of 7.05, while BWIN has a forward P/E of 21.89. We also note that NNGRY has a PEG ratio of 0.71. 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. BWIN currently has a PEG ratio of 1.03.
Another notable valuation metric for NNGRY is its P/B ratio of 0.64. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BWIN has a P/B of 4.66.
These are just a few of the metrics contributing to NNGRY's Value grade of B and BWIN's Value grade of D.
NNGRY sticks out from BWIN in both our Zacks Rank and Style Scores models, so value investors will likely feel that NNGRY is the better option right now.