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AEG vs. ZURVY: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Insurance - Multi line stocks have likely encountered both Aegon NV (AEG - Free Report) and Zurich Insurance Group Ltd. (ZURVY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.

Aegon NV has a Zacks Rank of #2 (Buy), while Zurich Insurance Group Ltd. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AEG has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

AEG currently has a forward P/E ratio of 7.89, while ZURVY has a forward P/E of 11.29. We also note that AEG has a PEG ratio of 0.27. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ZURVY currently has a PEG ratio of 1.21.

Another notable valuation metric for AEG is its P/B ratio of 1.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ZURVY has a P/B of 3.96.

These metrics, and several others, help AEG earn a Value grade of B, while ZURVY has been given a Value grade of C.

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


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