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

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Investors looking for stocks in the Insurance - Life Insurance sector might want to consider either NN Group NV Unsponsored ADR (NNGRY - Free Report) or The Baldwin Insurance Group (BWIN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.

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 #5 (Strong Sell). Investors should feel comfortable knowing that NNGRY likely has seen a stronger improvement to its earnings outlook than BWIN has recently. However, value investors will care about much more than just this.

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 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.

NNGRY currently has a forward P/E ratio of 7.88, while BWIN has a forward P/E of 11.08. We also note that NNGRY has a PEG ratio of 0.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BWIN currently has a PEG ratio of 0.54.

Another notable valuation metric for NNGRY is its P/B ratio of 0.81. 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 2.41.

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

NNGRY has seen stronger estimate revision activity and sports more attractive valuation metrics than BWIN, so it seems like value investors will conclude that NNGRY is the superior option right now.

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