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

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Investors with an interest in Insurance - Multi line stocks have likely encountered both Zurich Insurance Group Ltd. (ZURVY - Free Report) and Goosehead Insurance (GSHD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Zurich Insurance Group Ltd. has a Zacks Rank of #2 (Buy), while Goosehead Insurance has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ZURVY has an improving earnings 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

ZURVY currently has a forward P/E ratio of 6.57, while GSHD has a forward P/E of 47.98. We also note that ZURVY has a PEG ratio of 0.38. 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 1.55.

Another notable valuation metric for ZURVY is its P/B ratio of 3.24. 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 1,629.64.

These are just a few of the metrics contributing to ZURVY's Value grade of B and GSHD's Value grade of F.

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


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

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