AIZ vs. ZURVY: Which Stock Should Value Investors Buy Now?

AIZ ZURVY

Investors looking for stocks in the Insurance - Multi line sector might want to consider either Assurant (AIZ - Free Report) or Zurich Insurance Group Ltd. (ZURVY - 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.

Currently, Assurant has a Zacks Rank of #1 (Strong Buy), while Zurich Insurance Group Ltd. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AIZ has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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 11.77, while ZURVY has a forward P/E of 13.93. We also note that AIZ has a PEG ratio of 0.81. 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 4.04.

Another notable valuation metric for AIZ is its P/B ratio of 2.01. 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 3.02.

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

AIZ sticks out from ZURVY 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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