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AIZ vs. PUK: Which Stock Is the Better Value Option?

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Investors interested in Insurance - Multi line stocks are likely familiar with Assurant (AIZ - Free Report) and Prudential (PUK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Assurant and Prudential are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that AIZ likely has seen a stronger improvement to its earnings outlook than PUK has recently. But this is only part of the picture for value investors.

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.

AIZ currently has a forward P/E ratio of 9.33, while PUK has a forward P/E of 12.37. We also note that AIZ has a PEG ratio of 0.81. 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. PUK currently has a PEG ratio of 1.37.

Another notable valuation metric for AIZ is its P/B ratio of 1.50. 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, PUK has a P/B of 2.26.

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

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


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Prudential Public Limited Company (PUK) - free report >>

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