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EG or PUK: Which Is the Better Value Stock Right Now?

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Investors interested in Insurance - Multi line stocks are likely familiar with Everest Group (EG - Free Report) and Prudential (PUK - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Everest Group is sporting a Zacks Rank of #1 (Strong Buy), while Prudential has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EG has an improving earnings outlook. 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

EG currently has a forward P/E ratio of 6.31, while PUK has a forward P/E of 13.27. We also note that EG has a PEG ratio of 0.17. 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. PUK currently has a PEG ratio of 1.47.

Another notable valuation metric for EG is its P/B ratio of 1.36. 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, PUK has a P/B of 1.78.

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

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


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

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