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ALIZY or MURGY: 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 Allianz SE (ALIZY - Free Report) and M?nchener R?ckversicherungs-Gesellschaft (MURGY - 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.

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.

Allianz SE has a Zacks Rank of #2 (Buy), while M?nchener R?ckversicherungs-Gesellschaft has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ALIZY likely has seen a stronger improvement to its earnings outlook than MURGY has recently. 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 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.

ALIZY currently has a forward P/E ratio of 11.05, while MURGY has a forward P/E of 21.17. We also note that ALIZY has a PEG ratio of 1.21. 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. MURGY currently has a PEG ratio of 1.75.

Another notable valuation metric for ALIZY is its P/B ratio of 2.02. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MURGY has a P/B of 2.27.

Based on these metrics and many more, ALIZY holds a Value grade of A, while MURGY has a Value grade of C.

ALIZY 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 ALIZY is likely the superior value option right now.


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M?nchener R?ckversicherungs-Gesellschaft (MURGY) - free report >>

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