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NNGRY vs. BRP: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Insurance - Life Insurance sector might want to consider either NN Group NV Unsponsored ADR (NNGRY - Free Report) or BRP Group (BRP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

NN Group NV Unsponsored ADR has a Zacks Rank of #1 (Strong Buy), while BRP Group has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that NNGRY likely has seen a stronger improvement to its earnings outlook than BRP has recently. 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.

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.

NNGRY currently has a forward P/E ratio of 6.62, while BRP has a forward P/E of 17.98. We also note that NNGRY has a PEG ratio of 0.52. 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. BRP currently has a PEG ratio of 0.62.

Another notable valuation metric for NNGRY is its P/B ratio of 0.59. 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, BRP has a P/B of 2.13.

Based on these metrics and many more, NNGRY holds a Value grade of A, while BRP has a Value grade of D.

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


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