Back to top

Image: Bigstock

AIZ or ZURVY: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in Insurance - Multi line stocks have likely encountered both Assurant (AIZ - Free Report) and Zurich Insurance Group Ltd. (ZURVY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both Assurant and Zurich Insurance Group Ltd. have a Zacks Rank of # 2 (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. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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 11.75, while ZURVY has a forward P/E of 13.67. We also note that AIZ has a PEG ratio of 2.29. 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. ZURVY currently has a PEG ratio of 3.96.

Another notable valuation metric for AIZ is its P/B ratio of 2.06. 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, ZURVY has a P/B of 3.22.

Based on these metrics and many more, AIZ holds a Value grade of B, while ZURVY has a Value grade of C.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


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

Zurich Insurance Group Ltd. (ZURVY) - free report >>

Published in