AXAHY or ZURVY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Insurance - Multi line sector might want to consider either Axa Sa (AXAHY) or Zurich Insurance Group Ltd. (ZURVY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
Axa Sa and Zurich Insurance Group Ltd. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that AXAHY likely has seen a stronger improvement to its earnings outlook than ZURVY 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
AXAHY currently has a forward P/E ratio of 8.76, while ZURVY has a forward P/E of 12.93. We also note that AXAHY has a PEG ratio of 1.64. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ZURVY currently has a PEG ratio of 3.39.
Another notable valuation metric for AXAHY is its P/B ratio of 1.44. 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, ZURVY has a P/B of 3.
These are just a few of the metrics contributing to AXAHY's Value grade of A and ZURVY's Value grade of D.
AXAHY has seen stronger estimate revision activity and sports more attractive valuation metrics than ZURVY, so it seems like value investors will conclude that AXAHY is the superior option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Axa Sa (AXAHY) : Free Stock Analysis Report
Zurich Insurance Group Ltd. (ZURVY) : Free Stock Analysis Report
