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MURGY vs. GSHD: Which Stock Is the Better Value Option?
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Investors interested in Insurance - Multi line stocks are likely familiar with M?nchener R?ckversicherungs-Gesellschaft (MURGY - Free Report) and Goosehead Insurance (GSHD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
M?nchener R?ckversicherungs-Gesellschaft and Goosehead Insurance are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MURGY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
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 11.31, while GSHD has a forward P/E of 41.76. We also note that MURGY has a PEG ratio of 1.02. 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 2.56.
Another notable valuation metric for MURGY is its P/B ratio of 2.22. 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 149.84.
These are just a few of the metrics contributing to MURGY's Value grade of B and GSHD's Value grade of F.
MURGY has seen stronger estimate revision activity and sports more attractive valuation metrics than GSHD, so it seems like value investors will conclude that MURGY is the superior option right now.
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MURGY vs. GSHD: Which Stock Is the Better Value Option?
Investors interested in Insurance - Multi line stocks are likely familiar with M?nchener R?ckversicherungs-Gesellschaft (MURGY - Free Report) and Goosehead Insurance (GSHD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
M?nchener R?ckversicherungs-Gesellschaft and Goosehead Insurance are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MURGY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
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 11.31, while GSHD has a forward P/E of 41.76. We also note that MURGY has a PEG ratio of 1.02. 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 2.56.
Another notable valuation metric for MURGY is its P/B ratio of 2.22. 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 149.84.
These are just a few of the metrics contributing to MURGY's Value grade of B and GSHD's Value grade of F.
MURGY has seen stronger estimate revision activity and sports more attractive valuation metrics than GSHD, so it seems like value investors will conclude that MURGY is the superior option right now.