Back to top

Image: Bigstock

NNGRY or BWIN: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in stocks from the Insurance - Life Insurance sector have probably already heard of NN Group NV Unsponsored ADR (NNGRY - Free Report) and The Baldwin Insurance Group (BWIN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, NN Group NV Unsponsored ADR is sporting a Zacks Rank of #2 (Buy), while The Baldwin Insurance Group has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that NNGRY likely has seen a stronger improvement to its earnings outlook than BWIN has recently. But this is only part of the picture 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 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.

NNGRY currently has a forward P/E ratio of 6.84, while BWIN has a forward P/E of 21.58. We also note that NNGRY has a PEG ratio of 0.69. 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. BWIN currently has a PEG ratio of 1.01.

Another notable valuation metric for NNGRY is its P/B ratio of 0.61. 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, BWIN has a P/B of 4.66.

These metrics, and several others, help NNGRY earn a Value grade of B, while BWIN has been given a Value grade of D.

NNGRY 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 NNGRY is likely the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


NN Group NV Unsponsored ADR (NNGRY) - free report >>

Baldwin Insurance Group, Inc. (BWIN) - free report >>

Published in