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RDN or ZURVY: 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 Radian (RDN - Free Report) and Zurich Insurance Group Ltd. (ZURVY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
Radian and Zurich Insurance Group Ltd. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that RDN'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.
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.
RDN currently has a forward P/E ratio of 9.01, while ZURVY has a forward P/E of 12.55. We also note that RDN has a PEG ratio of 1.80. 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. ZURVY currently has a PEG ratio of 3.70.
Another notable valuation metric for RDN is its P/B ratio of 1.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZURVY has a P/B of 2.89.
Based on these metrics and many more, RDN holds a Value grade of B, while ZURVY has a Value grade of C.
RDN has seen stronger estimate revision activity and sports more attractive valuation metrics than ZURVY, so it seems like value investors will conclude that RDN is the superior option right now.
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RDN or ZURVY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Insurance - Multi line sector have probably already heard of Radian (RDN - Free Report) and Zurich Insurance Group Ltd. (ZURVY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
Radian and Zurich Insurance Group Ltd. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that RDN'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.
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.
RDN currently has a forward P/E ratio of 9.01, while ZURVY has a forward P/E of 12.55. We also note that RDN has a PEG ratio of 1.80. 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. ZURVY currently has a PEG ratio of 3.70.
Another notable valuation metric for RDN is its P/B ratio of 1.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZURVY has a P/B of 2.89.
Based on these metrics and many more, RDN holds a Value grade of B, while ZURVY has a Value grade of C.
RDN has seen stronger estimate revision activity and sports more attractive valuation metrics than ZURVY, so it seems like value investors will conclude that RDN is the superior option right now.