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NNGRY vs. BWIN: Which Stock Is the Better Value Option?
Investors looking for stocks in the Insurance - Life Insurance sector might want to consider either NN Group NV Unsponsored ADR (NNGRY - Free Report) or The Baldwin Insurance Group (BWIN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
NN Group NV Unsponsored ADR and The Baldwin Insurance Group are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. 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 only part of the picture for value investors.
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.
NNGRY currently has a forward P/E ratio of 7.19, while BWIN has a forward P/E of 22.21. We also note that NNGRY has a PEG ratio of 0.72. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BWIN currently has a PEG ratio of 1.04.
Another notable valuation metric for NNGRY is its P/B ratio of 0.66. 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, BWIN has a P/B of 4.73.
These are just a few of the metrics contributing to NNGRY's Value grade of B and BWIN's Value grade of D.
NNGRY has seen stronger estimate revision activity and sports more attractive valuation metrics than BWIN, so it seems like value investors will conclude that NNGRY is the superior option right now.