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MURGY or GSHD: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Insurance - Multi line sector have probably already heard of M?nchener R?ckversicherungs-Gesellschaft (MURGY - Free Report) and Goosehead Insurance (GSHD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
M?nchener R?ckversicherungs-Gesellschaft has a Zacks Rank of #2 (Buy), while Goosehead Insurance has a Zacks Rank of #3 (Hold) 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 piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
MURGY currently has a forward P/E ratio of 10.23, while GSHD has a forward P/E of 36.23. We also note that MURGY has a PEG ratio of 0.92. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GSHD currently has a PEG ratio of 2.09.
Another notable valuation metric for MURGY is its P/B ratio of 2.01. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GSHD has a P/B of 128.09.
Based on these metrics and many more, MURGY holds a Value grade of B, while GSHD has a Value grade of F.
MURGY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MURGY is likely the superior value option right now.
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MURGY or GSHD: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Insurance - Multi line sector have probably already heard of M?nchener R?ckversicherungs-Gesellschaft (MURGY - Free Report) and Goosehead Insurance (GSHD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
M?nchener R?ckversicherungs-Gesellschaft has a Zacks Rank of #2 (Buy), while Goosehead Insurance has a Zacks Rank of #3 (Hold) 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 piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
MURGY currently has a forward P/E ratio of 10.23, while GSHD has a forward P/E of 36.23. We also note that MURGY has a PEG ratio of 0.92. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GSHD currently has a PEG ratio of 2.09.
Another notable valuation metric for MURGY is its P/B ratio of 2.01. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GSHD has a P/B of 128.09.
Based on these metrics and many more, MURGY holds a Value grade of B, while GSHD has a Value grade of F.
MURGY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MURGY is likely the superior value option right now.