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MURGY or GSHD: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Insurance - Multi line sector might want to consider either M?nchener R?ckversicherungs-Gesellschaft (MURGY - Free Report) or 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Currently, M?nchener R?ckversicherungs-Gesellschaft has a Zacks Rank of #2 (Buy), while Goosehead Insurance has a Zacks Rank of #5 (Strong Sell). This means that MURGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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 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.

MURGY currently has a forward P/E ratio of 10.82, while GSHD has a forward P/E of 47.13. We also note that MURGY has a PEG ratio of 0.97. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GSHD currently has a PEG ratio of 1.49.

Another notable valuation metric for MURGY is its P/B ratio of 2.12. 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 170.90.

Based on these metrics and many more, MURGY holds a Value grade of B, while GSHD has a Value grade of F.

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


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M¿nchener R¿ckversicherungs-Gesellschaft (MURGY) - free report >>

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