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EG vs. GSHD: 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 Everest Group (EG - Free Report) and Goosehead Insurance (GSHD - 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.
Both Everest Group and Goosehead Insurance have a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle 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.
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.
EG currently has a forward P/E ratio of 7.02, while GSHD has a forward P/E of 52.32. We also note that EG has a PEG ratio of 0.19. 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. GSHD currently has a PEG ratio of 1.56.
Another notable valuation metric for EG is its P/B ratio of 1.51. 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, GSHD has a P/B of 473.84.
Based on these metrics and many more, EG holds a Value grade of A, while GSHD has a Value grade of F.
Both EG and GSHD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EG is the superior value option right now.
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EG vs. GSHD: Which Stock Is the Better Value Option?
Investors interested in stocks from the Insurance - Multi line sector have probably already heard of Everest Group (EG - Free Report) and Goosehead Insurance (GSHD - 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.
Both Everest Group and Goosehead Insurance have a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle 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.
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.
EG currently has a forward P/E ratio of 7.02, while GSHD has a forward P/E of 52.32. We also note that EG has a PEG ratio of 0.19. 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. GSHD currently has a PEG ratio of 1.56.
Another notable valuation metric for EG is its P/B ratio of 1.51. 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, GSHD has a P/B of 473.84.
Based on these metrics and many more, EG holds a Value grade of A, while GSHD has a Value grade of F.
Both EG and GSHD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EG is the superior value option right now.