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

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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.

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

NN Group NV Unsponsored ADR has a Zacks Rank of #2 (Buy), while The Baldwin Insurance Group has a Zacks Rank of #5 (Strong Sell) 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 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.

NNGRY currently has a forward P/E ratio of 7.95, while BWIN has a forward P/E of 10.73. We also note that NNGRY has a PEG ratio of 0.28. 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 0.52.

Another notable valuation metric for NNGRY is its P/B ratio of 0.82. 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 2.3.

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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