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NNGRY vs. BWIN: Which Stock Is the Better Value Option?

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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 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

NN Group NV Unsponsored ADR and The Baldwin Insurance Group are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NNGRY has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

NNGRY currently has a forward P/E ratio of 8.04, while BWIN has a forward P/E of 21.70. We also note that NNGRY has a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BWIN currently has a PEG ratio of 1.09.

Another notable valuation metric for NNGRY is its P/B ratio of 0.73. 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, BWIN has a P/B of 4.45.

These are just a few of the metrics contributing to NNGRY's Value grade of B and BWIN's Value grade of D.

NNGRY stands above BWIN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NNGRY is the superior value option right now.

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