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

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Investors interested in Insurance - Multi line stocks are likely familiar with Ageas SA (AGESY - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Ageas SA has a Zacks Rank of #2 (Buy), while Zurich Insurance Group Ltd. has a Zacks Rank of #3 (Hold). This means that AGESY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

AGESY currently has a forward P/E ratio of 7.15, while ZURVY has a forward P/E of 14.95. We also note that AGESY has a PEG ratio of 0.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZURVY currently has a PEG ratio of 0.93.

Another notable valuation metric for AGESY is its P/B ratio of 1.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZURVY has a P/B of 3.30.

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

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


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Ageas SA (AGESY) - free report >>

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