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Investors with an interest in Insurance - Life Insurance stocks have likely encountered both NN Group NV Unsponsored ADR (NNGRY) and The Baldwin Insurance Group (BWIN). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, both NN Group NV Unsponsored ADR and The Baldwin Insurance Group are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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.
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 8.04, while BWIN has a forward P/E of 23.20. We also note that NNGRY has a PEG ratio of 0.81. 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. BWIN currently has a PEG ratio of 1.14.
Another notable valuation metric for NNGRY is its P/B ratio of 0.70. 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 4.92.
These are just a few of the metrics contributing to NNGRY's Value grade of B and BWIN's Value grade of D.
Both NNGRY and BWIN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NNGRY is 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