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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) or The Baldwin Insurance Group (BWIN). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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 #3 (Hold). Investors should feel comfortable knowing that NNGRY likely has seen a stronger improvement to its earnings outlook than BWIN has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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 7.38, while BWIN has a forward P/E of 25.25. We also note that NNGRY has a PEG ratio of 0.74. 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 1.18.
Another notable valuation metric for NNGRY is its P/B ratio of 0.67. 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, BWIN has a P/B of 5.37.
These metrics, and several others, help NNGRY earn a Value grade of B, while BWIN has been given a Value grade of F.
NNGRY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that NNGRY is likely the superior value option right now.
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NN Group NV Unsponsored ADR (NNGRY) : Free Stock Analysis Report
Baldwin Insurance Group, Inc. (BWIN) : Free Stock Analysis Report