Back to top

Image: Bigstock

AXAHY vs. ZURVY: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in Insurance - Multi line stocks are likely familiar with Axa Sa (AXAHY - Free Report) and Zurich Insurance Group Ltd. (ZURVY - 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.

Axa Sa has a Zacks Rank of #2 (Buy), while Zurich Insurance Group Ltd. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that AXAHY likely has seen a stronger improvement to its earnings outlook than ZURVY has recently. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

AXAHY currently has a forward P/E ratio of 10.30, while ZURVY has a forward P/E of 15.98. We also note that AXAHY has a PEG ratio of 1.51. 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. ZURVY currently has a PEG ratio of 1.70.

Another notable valuation metric for AXAHY is its P/B ratio of 1.95. 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, ZURVY has a P/B of 4.12.

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

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


See More Zacks Research for These Tickers


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


Axa Sa (AXAHY) - free report >>

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

Published in