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AXAHY vs. ZURVY: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Insurance - Multi line sector have probably already heard of Axa Sa (AXAHY - Free Report) and Zurich Insurance Group Ltd. (ZURVY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Axa Sa and Zurich Insurance Group Ltd. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that AXAHY'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.

AXAHY currently has a forward P/E ratio of 8.82, while ZURVY has a forward P/E of 12.86. We also note that AXAHY has a PEG ratio of 1.57. 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. ZURVY currently has a PEG ratio of 10.21.

Another notable valuation metric for AXAHY is its P/B ratio of 1.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ZURVY has a P/B of 2.55.

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

AXAHY sticks out from ZURVY in both our Zacks Rank and Style Scores models, so value investors will likely feel that AXAHY is the better option right now.


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