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AIZ vs. GSHD: 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 Goosehead Insurance (GSHD - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Assurant and Goosehead Insurance are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

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 11.41, while GSHD has a forward P/E of 57.12. We also note that AIZ has a PEG ratio of 0.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GSHD currently has a PEG ratio of 1.86.

Another notable valuation metric for AIZ is its P/B ratio of 1.95. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GSHD has a P/B of 516.55.

These metrics, and several others, help AIZ earn a Value grade of A, while GSHD has been given a Value grade of F.

Both AIZ and GSHD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AIZ is the superior value option right now.


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

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