Investors interested in stocks from the Insurance - Life Insurance sector have probably already heard of NN Group NV Unsponsored ADR (NNGRY) and The Baldwin Insurance Group (BWIN). 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.
NN Group NV Unsponsored ADR and The Baldwin Insurance Group are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that NNGRY likely has seen a stronger improvement to its earnings outlook than BWIN 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
NNGRY currently has a forward P/E ratio of 8.35, while BWIN has a forward P/E of 22.66. We also note that NNGRY has a PEG ratio of 0.87. 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 1.13.
Another notable valuation metric for NNGRY is its P/B ratio of 0.75. 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 4.57.
These are just a few of the metrics contributing to NNGRY's Value grade of B and BWIN's Value grade of D.
NNGRY stands above BWIN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NNGRY is the superior value option right now.
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NN Group NV Unsponsored ADR (NNGRY): Free Stock Analysis Report Baldwin Insurance Group, Inc. (BWIN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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