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AIZ or BBSEY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Insurance - Multi line stocks have likely encountered both Assurant (AIZ - Free Report) and BB Seguridade Participacoes SA (BBSEY - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Assurant has a Zacks Rank of #1 (Strong Buy), while BB Seguridade Participacoes SA 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 just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 14.12, while BBSEY has a forward P/E of 43.82. We also note that AIZ has a PEG ratio of 0.82. 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. BBSEY currently has a PEG ratio of 2.75.

Another notable valuation metric for AIZ is its P/B ratio of 1.96. 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, BBSEY has a P/B of 7.35.

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

AIZ has seen stronger estimate revision activity and sports more attractive valuation metrics than BBSEY, so it seems like value investors will conclude that AIZ is the superior option right now.


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

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