Yahoo Finance MURGY vs. GSHD: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Insurance - Multi line sector might want to consider either M?nchener R?ckversicherungs-Gesellschaft (MURGY) or Goosehead Insurance (GSHD). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
M?nchener R?ckversicherungs-Gesellschaft and Goosehead Insurance are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MURGY has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
MURGY currently has a forward P/E ratio of 10.55, while GSHD has a forward P/E of 40.87. We also note that MURGY has a PEG ratio of 0.97. 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. GSHD currently has a PEG ratio of 1.52.
Another notable valuation metric for MURGY is its P/B ratio of 2.23. 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, GSHD has a P/B of 81.74.
Based on these metrics and many more, MURGY holds a Value grade of B, while GSHD has a Value grade of F.
MURGY has seen stronger estimate revision activity and sports more attractive valuation metrics than GSHD, so it seems like value investors will conclude that MURGY is the superior option right now.
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M?nchener R?ckversicherungs-Gesellschaft (MURGY) : Free Stock Analysis Report
Goosehead Insurance (GSHD) : Free Stock Analysis Report
